Last week (August 27 – September 3) metallurgical enterprises kept their purchase prices at the level of UAH 8600/mt. The profitability of scrap metal purchases is above the standard value. The current purchase prices for scrap are comfortable for the work of Ukrainian factories.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 6.95-7 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 (August 26 – September 1) decreased to 57.7 thousand tons. Last week (August 19 –25) there were 65.9 thousand tons. The demand for scrap was 57.7 thousand tons. Level of satisfaction the demand of metal plants for scrap last week amounted to 101.5%.
Remains in ports
Scrap stocks in ports increased to 1.4 thousand tons. Last week it was 1 thousand tons.
Smelt steel
Steel production in August 26 – September 1 increased to 399 thousand tons. In the previous week (August 19 – 25) there were 388 thousand tons.
Scrap stocks at metallurgical enterprises
Remains of scrap in the warehouses of metallurgical plants as of September 2 decreased to 143 thousand tons. Last week it was 163 thousand tons. Inventories in working days are 17 days, which is 5 days higher than the standard value. The highest stocks at Azovstal – 35 days. The lowest – at Dneprspetsstal – 8 days.
Domestic price forecast
In the coming weeks, quotes for scrap metal on the domestic market will continue to decline on the back of negative conditions on the long steel market. The forecasted average price current week is UAH 8300/mt.
Source: "Ukrpromvneshexpertiza"
