Last week (August 20 – 27), metallurgical enterprises kept their purchase prices at the level of UAH 8600/mt. The profitability of scrap metal purchases is above the standard value. The current purchase prices for scrap are comfortable for the work of Ukrainian factories.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 6.95-7 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 (August 19-25) decreased to 65.9 thousand tons. In the previous week (August 12-18) there were 71.2 thousand tons. The demand for scrap was 56.8 thousand tons. metal plants in scrap last week amounted to 117%.
Remains in ports
Scrap stocks in ports decreased to 1 thousand tons. Last week it was 1.5 thousand tons.
Smelt steel
Steel production for August 19-25 increased to 388 thousand tons. Last week (August 12-18) there were 384 thousand tons.
Scrap stocks at metallurgical enterprises
Remains of scrap in the warehouses of metallurgical plants as of August 25 increased to 163 thousand tons. The previous week was 136 thousand tons. Inventories in working days are 20 days, which is 8 days higher than the standard value. The highest reserves are at MMК Ilyichа – 35 days. The lowest – at Azovstal – 1 day.
Domestic price forecast
In the coming weeks, quotes for scrap metal on the domestic market will continue to decline amid negative conditions on the long steel market. The forecasted average price next week is UAH 8300/mt.
Source: "Ukrpromvneshexpertiza"
