Last week, steelmakers left purchase prices for scrap metal unchanged at UAH 9,050/mt. In the first week of the New Year, they increased by UAH 1,700/mt from UAH 7350/mt. The profitability of purchasing scrap metal remains above the standard value. Consumers can afford another increase in scrap prices in the domestic market. Supplies to metallurgical plants
Scrap supplies to metallurgical plants (January 7–13) increased to 67.7 thousand tons compared to 65.9 thousand tons in the previous week (December 31 – January 6). The demand for scrap was 63.3 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 107.9%. Traders and procurers became more active in shipments amid an increase in purchase prices on the domestic market.
Remains in the ports of Ukraine
Scrap stocks in ports rose to 1.4 thousand tons compared to 1.2 thousand tons in the previous week.
Dynamics of steel smelting
Steel production for January 7-13 increased to 418 thousand tons, compared to 409 thousand tons in the previous week (December 31 – January 6).
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in the warehouses of metallurgical plants increased to 167 thousand tons compared to 155 thousand tons in the previous week. Inventories in working days are 18 days, which is significantly higher than the standard value.
Domestic scrap price forecast
In the coming weeks, in the domestic market of Ukraine, factories may go for another increase in purchase prices against the background of rising billet prices and a high probability of continued growth in the cost of scrap metal in foreign markets. The forecasted average price next week is UAH 9050/mt.
Source: "Ukrpromvneshexpertiza"
