Last week, steelmakers kept the purchase prices for scrap unchanged at UAH 7000/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 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 1–7) decreased to 68.4 thousand tons. For comparison: in the previous week (March 25–31) there were 69.4 thousand tons. The demand for scrap was 61 thousand tons. Level of satisfaction metal plants' needs for scrap last week amounted to 113.1%.
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 April 1 – 7 increased to 406 thousand tons. For comparison: in the previous week (March 25 – 31) there were 392 thousand tons.
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 235 thousand tons. For comparison: the previous week there were 232 thousand tons. Inventories in working days are 26 days, which is twice the standard value.
Domestic scrap price forecast
The presence of high warehouse stocks at the mills and a gradual increase in supply will lead to a decrease in the purchase prices of metallurgical plants in the domestic market. The forecasted average price next week is UAH 6700/mt.
Source: "Ukrpromvneshexpertiza"
