Last week, steelmakers left prices unchanged at UAH 6,800/mt. The profitability of scrap metal purchases has increased and is above the standard value. In such conditions, factories can afford to raise purchase prices on the domestic market.The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 6.27-6.32 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 (February 25 – March 3) decreased to 61.7 thousand tons. For comparison: in the previous week (February 18 - 24) there were 64.5 thousand tons. The demand for scrap was 56.8 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 109.7%.
Remains in ports
Scrap stocks in ports decreased to 1.3 thousand tons. For comparison: in the previous week there were 1.8 thousand tons.
Dynamics of steel smelting
Steel production for February 25 – March 3 decreased to 397 thousand tons. For comparison: in the previous week (February 18 – 24) there were 404 thousand tons.
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 205 thousand tons. For comparison: in the previous week there were 191 thousand tons. Inventories in working days are 23 days, which is significantly higher than the standard value.
Domestic scrap price forecast
In the coming week, metal plants will keep domestic prices unchanged. The desire of buyers to reduce prices is restrained by a significant drop in scrap traffic and an increase in prices in external directions. In the future, the factories will be forced to increase domestic prices against the background of the rise in the cost of rolled products and the growth in the cost of scrap exported from Ukraine. The forecasted average price next week is UAH 6800/mt.
Source: "Ukrpromvneshexpertiza"
