Last week, factories lowered purchase prices amid adverse market conditions for finished rolled products and fairly high inventory levels. At the moment, the average market purchase price of plants is 7581 UAH / ton.
Deliveries. Scrap supplies to metallurgical plants increased to 64 thousand tons, which is 6% more than a week earlier. Traders are in a hurry to unload the accumulated raw materials due to the expected continuation of the fall in purchase prices in the domestic market.
Remains in ports. Stocks of scrap in the ports of Ukraine decreased to 5.7 thousand tons.
Dynamics of steelmaking. Steel smelting has decreased minimally and amounted to 408 thousand tons.
The balance of scrap at the plants. The level of satisfaction of the needs of metallurgical plants for imported scrap amounted to 117%. Situational surplus allows mills to increase stocks.
Stocks of scrap at iron and steel works. Remains of scrap in the warehouses of factories increased to 183 thousand tons, which is 11 thousand tons more than a week earlier. The indicator of stocks in days of work was 23 days, which is two times higher than the standard value. In such circumstances, the plants will continue to reduce purchase prices.
Forecast domestic and export prices for scrap.
Given the high stocks and lower prices for metal, scrap quotes on the domestic market will continue to decline. The predicted average price next week is 7480 UAH / ton.
In the coming week, scrap quotations will fall further due to the sluggish demand for raw materials in Turkey, as well as a significant supply of cheap semi-finished products from China. In the future, prices will start to increase as the stocks of importers are depleted and the long-rolled steel market conditions improve. The forecast price range for scrap next week is $ 295-305 / t cif.
The review was prepared on the basis of the data of the State Enterprise “Ukrpromvneshnekspertiza”.
