Last week, metallurgical enterprises kept the purchase prices for scrap unchanged at the level of UAH 7000/mt. The profitability of scrap metal purchases is above the standard value.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of UAH 5.66-5.7 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 (April 8-14) decreased to 64.9 thousand tons. For comparison: in the previous week (April 1-7) there were 68.4 thousand tons. The demand for scrap was 62.1 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 105.5%.
Remains in ports
Scrap stocks in ports increased to 1.5 thousand tons. For comparison: in the previous week there were 1.3 thousand tons.
Dynamics of steel smelting
Steel production for April 8-14 increased to 421 thousand tons. For comparison: in the previous week (April 1-7) there were 406 thousand tons.
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 246 thousand tons. For comparison: the previous week there were 235 thousand tons. Inventories in working days are 27 days, which is two times higher than the standard value.
Domestic scrap price forecast
The presence of high warehouse stocks at the mills and a gradual increase in supply will lead to a decrease in the purchase prices of metallurgical plants in the domestic market. The forecasted average price next week is UAH 6700/mt.
Source: "Ukrpromvneshexpertiza"
