Last week, metallurgical enterprises lowered purchase prices for scrap by UAH 300– to UAH 7000/mt. The profitability of scrap metal purchases has increased and is above the standard value. However, the factories intend to continue lowering purchase prices.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of 6.47-6.52 thousand UAH 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 (March 25 - 31) increased to 69.4 thousand tons. For comparison: in the previous week (March 18 - 24) there were 64.2 thousand tons. The demand for scrap was 56 thousand tons. The level of satisfaction the demand of metal plants for scrap last week amounted to 124.8%.
Remains in ports
Scrap stocks in ports increased to 1.5 thousand tons. For comparison: in the previous week there were 1.3 thousand tons.
Dynamics of steel smelting
Steel production for March 25 - 31 decreased to 392 thousand tons. For comparison: in the previous week (March 18 - 24) there were 405 thousand tons.
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 232 thousand tons. For comparison: the previous week there were 209 thousand tons. Inventories in working days are 29 days, which is two times higher than the standard value.
Domestic scrap price forecast
A decrease in scrap prices on external routes and a decrease in the cost of rolled products will lead to a decrease in the purchase prices of metallurgical plants in the domestic market. The forecasted average price next week is UAH 6700/mt.
Source: "Ukrpromvneshexpertiza"
