Supplies to the metal plants. Last week, the plants left prices unchanged against the background of a significant deterioration in scrap collection in the country's regions. At the moment, the average market purchase price of plants is 5900 UAH / ton.
Scrap supplies continue to decline amid falling prices in the domestic market. Over the last week about 47 thousand tons were delivered, which is 8% less than a week earlier.
Remains in the ports of Ukraine. Scrap stocks in the ports of Ukraine have slightly decreased and currently amount to 5.5 thousand tons.
Dynamics of steelmaking. Steel production decreased to 411 thousand tons, which is 4 thousand tons or 1% less than a week earlier. Electrostal still does not melt steel amid a shortage of raw materials and its weak demand for products.
The balance of scrap at the plants. The level of satisfaction of the needs of metallurgical plants in imported scrap amounted to 83%. The deficit causes a decrease in stocks at Ukrainian factories.
Stocks of scrap at iron and steel works. Scraps in the warehouses of the factories sank to 190 thousand tons. The indicator of stocks in the days of work was 23 days, which is more than twice 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 weak demand for metal, scrap quotes on the domestic market will continue to decline. The forecast average price for the next week is 5800 UAH / ton. In foreign markets in the coming weeks scrap quotes will fluctuate in a wide price range. Attempts by traders to continue raising prices will encounter stiff resistance from buyers who are not yet able to achieve success in sales of rolled products. The beginning of a stable price increase is likely in the second decade of February - as demand recovers in the end-product segment. The forecasted price range for scrap next week is $ 280-290 / t cif.
The review was prepared on the basis of the data of the State Enterprise “Ukrpromvneshnekspertiza”.
