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 ferrous scrap remains above the standard value. Expectations of an increase in the cost of scrap from the beginning of November to UAH 5900/mt have not yet come true.
Supplies to metallurgical plants
Ferrous scrap deliveries to metallurgical plants increased to 68 thousand tons, which is 1.4 thousand tons or 2.1% more than a week earlier. The demand for scrap was 65.4 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 105%.Traders and procurers keep the material in warehouses, counting on the rapid rise in prices on the domestic market.
Remains in the ports of Ukraine
Ferrous scrap stocks in ports fell to 1.1 thousand tons against 1.5 thousand tons in the previous week.
Dynamics of steel smelting
Steel production fell to 409 thousand tons, which is 1 thousand tons less than a week earlier.
Warehouse stocks of scrap at metallurgical enterprises
Remains of ferrous scrap in the warehouses of steel plants increased to 130 thousand tons against 125 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 metal in foreign markets. The forecast average price for the next week is UAH 5900/mt.
Source: "Ukrpromvneshexpertiza"
