Metallurgical enterprises did not change their purchase prices last week, leaving them at the level of UAH 8,000 / t. Although the profitability of scrap metal purchases has decreased, it is above the standard value.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of 6.46-6.51 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 (May 27-June 2) decreased to 63.9 thousand tons. In the previous week (May 20-26) there were 70 thousand tons. The demand for scrap was 56.7 thousand tons. in scrap last week amounted to 114%.
Remains in ports
Scrap stocks in ports decreased to 1 thousand tons. Last week it was 1.2 thousand tons.
Smelt steel
Steel production for May 27-June 2, May decreased to 409 thousand tons. In the previous week (May 20-26) it was 432 thousand tons.
Scrap stocks at metallurgical enterprises
Remains of scrap in the warehouses of metallurgical plants increased to 297 thousand tons. Last week it was 282 thousand tons. Inventories in working days are 36 days, which is three times higher than the standard value. The highest stocks at Dneprospetsstal – 84 days. The lowest – at Azovstal – 18 days.
Domestic price forecast
The downward reversal of prices for rolled metal and scrap on foreign markets will push Ukrainian factories to lower purchase prices on the domestic market in the coming weeks. The forecast average price for the current week is 8000 UAH/t.
Source: "Ukrpromvneshexpertiza"
