Purchase prices for ferrous scrap did not change last week. The average market purchase price of metallurgical enterprises amounted to UAH 5,700/mt. The current price is quite satisfactory for buyers. The profitability of purchasing ferrous scrap remains above the standard value.Supplies to metallurgical plants
Ferrous scrap deliveries to metal plants increased to 69.5 thousand tons, which is 3.3 thousand tons or 5% more than a week earlier.
Remains in the ports of Ukraine
Ferrous scrap stocks in ports fell to 1.4 thousand tons against 1.6 thousand tons in the previous week.
Dynamics of steel smelting
Steel production increased to 412 thousand tons, which is 11 thousand tons or 2.7% more than a week earlier.
Warehouse stocks of scrap at metallurgical enterprises
Ferrous scrap supplies to metallurgical enterprises amounted to 69.5 thousand tons, with a demand of 62.5 thousand tons. The level of meeting the needs of metal plants for ferrous scrap last week amounted to 112%, which allowed them to increase their stocks. Remains of ferrous scrap in warehouses of metallurgical plants increased to 120 thousand tons against 116 thousand tons a week earlier. Inventories in working days are 13 days, which is slightly above the standard value.
Domestic scrap price forecast
The downward trend will dominate on the domestic market due to weakening demand for Ukrainian rolled steel on foreign markets and high stocks at steelmakers. The forecast average price next week is UAH 5700/mt.
Source: "Ukrpromvneshexpertiza"
