Last week, metallurgical enterprises left purchase prices for scrap metal practically unchanged at the level of UAH 9000/mt. The average price of raw materials decreased by UAH 50 /mt due to a decrease in the purchase price by Interpipe to 8.55 thousand UAH. The rest of the steel works keep the price at the level of UAH 9.05 thousand per ton. The profitability of purchasing scrap metal fluctuates around the standard value. Most likely, metallurgists will soon lower their purchase prices.The prices of scrap collecting companies for grade 3 scrap in the regions remain at the level of UAH 8.47-8.52 thousand per ton. The upper border of the price range prevails in the southeastern regions of the country.
Supplies to metallurgical plants
Scrap deliveries to metallurgical plants (January 21-27) increased to 67.4 thousand tons compared to 65.2 thousand tons in the previous week (January 14-20). The demand for scrap was 57.8 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 117.5%.
Remains in the ports of Ukraine
Scrap stocks in ports rose to 1.7 thousand tons compared to 1.2 thousand tons in the previous week.
Dynamics of steel smelting
Steel production for January 21-27 decreased to 383 thousand tons, compared to 402 thousand tons in the previous week (January 14-20).
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 190 thousand tons compared to 175 thousand tons in the previous week. Inventories in working days are 21 days, which is significantly higher than the standard value.
Domestic scrap price forecast
In the coming weeks, in the domestic market of Ukraine, metal plants will reduce purchase prices in connection with the beginning of the fall in the cost of scrap and rolled products in foreign markets. The forecast average price for next week is UAH 8500/mt.
Source: "Ukrpromvneshexpertiza"
