Last week, almost metal enterprises reduced purchase prices for scrap by 600 UAH – to UAH 8450 /mt. The average price of raw materials decreased to UAH 8.46 thousand. The purchase price of Interpipe remained at the level of the previous week – UAH 8.55 thousand. The profitability of purchasing scrap metal fluctuates around the standard value. Most likely, metallurgists will soon lower their purchase prices.The prices of scrap collecting companies for grade 3 scrap in the regions remain at the level of UAH 7.97-8.02 thousand per ton. The upper limit of the price range prevails in the southeastern regions of the country.
Supplies to metallurgical plants
Scrap supplies to metallurgical plants (January 28 – February 3) decreased to 65.5 thousand tons compared to 67.4 thousand tons in the previous week (January 21 – 27). The demand for scrap amounted to 60.3 thousand tons. The level of satisfaction of the needs of metallurgical plants for scrap last week was 109.7%.
Remains in the ports of Ukraine
Scrap stocks in ports decreased to 1.5 thousand tons compared to 1.7 thousand tons in the previous week.
Dynamics of steel smelting
Steel production for January 28 – February 3 increased to 388 thousand tons, compared with 383 thousand tons in the previous week (January 21 – 27).
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metal plants increased to 191 thousand tons compared to 190 thousand tons in the previous week. Inventories in working days are 22 days, which is significantly higher than the standard value.
Domestic scrap price forecast
In the coming weeks, in the domestic market of Ukraine, metal plants will reduce purchase prices due to the continued fall in the cost of scrap and rolled products in foreign markets. The predicted average price next week is UAH 8000/mt.
Source: "Ukrpromvneshexpertiza"
