Last week, metallurgical enterprises in two stages reduced purchase prices for scrap metal by an aggregate of UAH 1,040 to UAH 7,500/t. The profitability of scrap metal purchases has increased and is above the standard value. Buyers intend to continue to cut prices.
The prices of scrap collecting companies for grade 3 scrap in the regions automatically decreased by UAH 1000 to the level of UAH 6.97-7.02 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 (February 4-10) increased to 66.2 thousand tons. For comparison: in the previous week (January 28-February 3) there were 65.5 thousand tons. The demand for scrap was 59 thousand tons. of meeting the needs of metal plants in scrap last week amounted to 113.3%.
Remains in the ports
Scrap stocks in ports decreased to 1.3 thousand tons. Last week it was 1.5 thousand tons.
Dynamics of steel smelting
Steel production for February 4-10 decreased to 384 thousand tons. For comparison: in the previous week (January 28-February 3) there were 388 thousand tons.
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 203 thousand tons. For comparison: in the previous week there were 191 thousand tons. Inventories in working days are 24 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 forecasted average price for the next week is UAH 7000/mt.
Source: "Ukrpromvneshexpertiza"
