Last week, steelmakers lowered their purchase prices for scrap by UAH 500 - to UAH 7300/mt. The profitability of scrap metal purchases has increased and is above the standard value. However, the factories intend to continue lowering purchase prices.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 6.77-6.82 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 (March 18-24) increased to 64.2 thousand tons. For comparison: in the previous week (March 11-17) there were 60.9 thousand tons. The demand for scrap was 59.9 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 108.2%.
Remains in ports
Scrap stocks in ports decreased to 1.3 thousand tons. For comparison: in the previous week there were 1.5 thousand tons.
Dynamics of steel smelting
Steel production for March 18-24 increased to 405 thousand tons. For comparison: in the previous week (March 11-17) there were 398 thousand tons.
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 209 thousand tons. For comparison: last week there were 192 thousand tons. Inventories in working days are 22 days, which is two times higher than the standard value.
Domestic scrap price forecast
A decrease in scrap prices on external routes and a decrease in the cost of rolled products will lead to a decrease in the purchase prices of metallurgical plants on the domestic market. The forecast average price next week is UAH 7000/mt.
Source: "Ukrpromvneshexpertiza"
