Last week (August 6-13), metallurgical enterprises reduced purchase prices for scrap metal by UAH 300 - to UAH 9000/mt. The reason is the fall in the cost of scrap metal in external directions and the reduction in the cost of finished rolled products.
The profitability of scrap metal purchases is above the standard value. Current purchase prices for scrap are comfortable for Ukrainian factories
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 7.27-7.32 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 5-11) increased to 61.9 thousand tons. In the previous week (July 29-August 4) there were 47.4 thousand tons. The demand for scrap amounted to 56.8 thousand tons. Satisfaction level the demand of metal plants for scrap last week amounted to 110%.
Remains in ports
Scrap stocks in ports increased to 1.4 thousand tons. Last week it was 1.1 thousand tons.
Smelt steel
Steel production for August 5-11 fell to 381 thousand tons. In the previous week (July 29 - August 4) there were 386 thousand tons.
Scrap stocks at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 129 thousand tons. Last week it was 122 thousand tons. Inventories in working days are 15 days, which is 3 days higher than the standard value. The highest stocks on DMKD are 31 days. The lowest - at Dneprospetsstal - 7 days.
Domestic price forecast
In the coming weeks, quotes for scrap metal on the domestic market will continue to decline amid negative conditions on the long steel market. The forecasted average price next week is UAH 8700/mt.
Source: "Ukrpromvneshexpertiza"
