Last week, steelmakers kept the purchase prices for scrap unchanged at UAH 7000/mt. The profitability of scrap metal purchases is above the standard value.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 5.66-5.7 thousand per ton. The upper border of the price range prevails in the southeastern regions of the country.
Supplies to steel plants
Scrap supplies to metallurgical plants (April 15-21) decreased to 60.9 thousand tons. In the previous week (April 8-14) there were 64.9 thousand tons. The demand for scrap was 56.6 thousand tons. metal plants in scrap last week amounted to 108.6%.
Remains in ports
Scrap stocks in ports increased to 2 thousand tons. Last week it was 1.5 thousand tons.
Smelt steel
Steel production for April 15-21 decreased to 399 thousand tons. Last week (April 8-14) it was 421 thousand tons.
Scrap stocks at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 266 thousand tons. Last week it was 246 thousand tons. Inventories in working days are 32 days, which is three times higher than the standard value. Dneprospetsstal has the highest reserves – 105 days. The lowest – at Azovstal – almost 13 days.
Domestic price forecast
The presence of significant stocks at the mills and a gradual increase in supply will lead to a decrease in the purchase prices of metallurgical plants. The forecast average price for the current week is UAH 6700/mt.
Source: "Ukrpromvneshexpertiza"
