Last week, most steel companies left purchase prices unchanged at UAH 8,000/mt. Due to the increase in the price of Interpipe Steel from UAH 7000 to UAH 8000 per tonne, the average price for scrap metal increased by UAH 110 - up to UAH 8000/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 6.46-6.51 thousand UAH 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 (May 20-26) increased to 70 thousand tons. Last week (May 13-19) there were 68.3 thousand tons. The demand for scrap was 60.9 thousand tons. scrap last week amounted to 116%.
Remains in ports
Scrap stocks in ports increased to 1.2 thousand tons. Last week it was 1 thousand tons.
Smelt steel
Steel production for May 20-26 increased to 432 thousand tons. Last week (May 13-19) it was 425 thousand tons.
Scrap stocks at metallurgical enterprises
Remains of scrap in the warehouses of metallurgical plants increased to 282 thousand tons. Last week it was 273 thousand tons. Inventories in working days are 32 days, which is three times higher than the standard value. The highest stocks at Dneprospetsstal - 133 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"
