Metallurgical enterprises did not change their purchase prices last week, leaving them at the level of UAH 8,000/mt. Although the profitability of scrap metal purchases has decreased, it is above the standard value.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 6.46-6.51 thousand per ton. The upper border of the price range prevails in the southeastern regions of the country.
Supplies to steel plants
Scrap deliveries to metallurgical plants (June 17-23) decreased to 53.8 thousand tons. In the previous week (June 10-16) there were 58.3 thousand tons. The demand for scrap was 64.7 thousand tons. metal plants in scrap last week amounted to 84.2%.
Remains in ports
Scrap stocks in ports decreased to 1.1 thousand tons. Last week it was 1.4 thousand tons.
Smelt steel
Steel production for June 17-23 decreased to 432 thousand tons. Last week (June 10-16) it was 425 thousand tons.
Scrap stocks at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants decreased to 252 thousand tons. Last week it was 305 thousand tons. Inventories in working days are 25 days, which is 2 times higher than the standard value. The highest reserves at Energomashspetsstal - 114 days. The lowest - at Azovstal - 14 days.
Domestic price forecast
The downward reversal of prices for rolled metal and scrap on foreign markets will push Ukrainian factories to lower purchase prices on the domestic market in the coming weeks. The forecasted average price next week is UAH 8000/mt.
Source: "Ukrpromvneshexpertiza"
