Last week, the purchase prices of metal enterprises for ferrous scrap remained unchanged at the level of UAH 5700/mt. The current price is quite satisfactory for buyers. The profitability of purchasing ferrous scrap remains above the standard value.Supplies to metallurgical plants
Scrap deliveries to steel plants decreased to 66.7 thousand tons, which is 1.7 thousand tons or 2.5% less than a week earlier. Traders and procurers keep raw materials in warehouses, counting on the projected rise in prices on the domestic market.
Remains in the ports of Ukraine
Scrap stocks in ports fell to 1.1 thousand tons against 1.3 thousand tons in the previous week.
Dynamics of steel smelting
Steel production increased to 406 thousand tons, which is 8 thousand tons or 2% more than a week earlier.
Warehouse stocks of scrap at metallurgical enterprises
Scrap supplies to metallurgical enterprises amounted to 66.7 thousand tons, while the demand was 63.4 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 106%, which allowed them to increase their stocks. Remains of ferrous scrap in the warehouses of steel plants increased to 127 thousand tons against 122 thousand tons a week earlier. Inventories in working days are 14 days, which is slightly above the standard value.
Domestic scrap price forecast
In the domestic market of Ukraine, the factories will go to increase purchase prices against the background of more expensive billets and a high probability of an increase in the cost of ferrous scrap in foreign markets. The forecast average price for the next week is UAH 5900/mt.
Source: "Ukrpromvneshexpertiza"
