Last week, the purchase prices of metal enterprises for ferrous scrap remained unchanged at the level of UAH 5700/mt. The current price is quite satisfactory for buyers. The profitability of purchasing scrap metal remains above the standard value.Supplies to metallurgical plants
Ferrous scrap deliveries to metallurgical plants decreased to 66.6 thousand tons, which is approximately at the same level as a week earlier. Traders and procurers keep raw materials in warehouses, counting on the projected rise in prices on the domestic market.
Remains in the ports of Ukraine
Ferrous scrap stocks in ports increased to 1.5 thousand tons against 1.1 thousand tons in the previous week.
Dynamics of steel smelting
Steel production increased to 410 thousand tons, which is 4 thousand tons or 1% more than a week earlier.
Warehouse stocks of scrap at metallurgical enterprises
Ferrous scrap supplies to metallurgical enterprises amounted to 66.6 thousand tons, while the demand was 63.1 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 106.5%, which allowed them to increase their stocks. Remains of scrap in the warehouses of metallurgical plants fell to 125 thousand tons against 127 thousand tons a week earlier. Inventories in working days are 14 days, which is slightly above the standard value.
Domestic scrap price forecast
In the domestic market of Ukraine, the factories will go to increase purchase prices against the background of more expensive billets and a high probability of an increase in the cost of scrap in foreign markets. The forecast average price for this week is UAH 5900/mt.
Source: "Ukrpromvneshexpertiza"
