Last week, the plants again lowered their purchase prices amid adverse market conditions for finished rolled products and fairly high stockpiles. Currently, the average market purchase price of plants is 7494 UAH / ton
Deliveries. Scrap supplies fell to 60 thousand tons, which is 4 thousand tons or 6% less than a week earlier. Deliveries will worsen due to the continued fall in purchase prices in the domestic market.
Remains in ports. Scrap stocks in the ports of Ukraine increased to 6.4 thousand tons.
Dynamics of steelmaking. Steel production increased significantly and amounted to 427 thousand tons, which is 10% more than a week earlier. MK Azovstal doubled the capacity utilization.
The balance of scrap at the plants. The level of satisfaction of the needs of metallurgical plants for imported scrap amounted to 108%. 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 194 thousand tons, which is 11 thousand tons more than a week earlier. The indicator of stocks in the days of work was 24 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 forecast average price next week is 7300 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 forecasted price range for scrap next week is $ 290-300 / t cif.
The review was prepared on the basis of the data of the state enterprise “Ukrpromvneshnekspertiza”
