Last week the scrap value in the domestic market has not changed and currently, the average quote is 2438 UAH/t (305 $ /MT). Metallurgists are not in a hurry to increase procurement prices, as the demand for finished products remains weak. However, many consumers complain about the low inventory levels that could force them to raise the cost of raw materials purchased.
With regard to the supply of scrap to the factories, his rate was almost unchanged and amounted to a week 83,9 thousand tons, the Main reason for such a low volume of shipments is a low level purchase prices and the weak payment discipline on the part of consumers. These factors have a serious negative impact on the primary lomozagotovki that appears on the final performance of delivery of scrap to smelters. Note that the volume of shipments of raw materials do not exceed 92 thousand tonnes from the end of June this year.
Over the past week the indicator cover requirements for imported scrap of Ukrainian enterprises amounted to approximately 81%, slightly higher than the previous week. The deficit, which persists in the market for a long time, does not allow the plants to establish sufficient inventory levels. Unlike the previous week, when the surplus balance had only ArcelorMittal over the past seven days surplus balance was formed at three locations – at the "Elektrostal" MK Enakievo and Donetsk EMZ. At other enterprises the balance were clearly deficient character, and the greatest deficit was observed in the plants of the holding Metinvest and ISD.
Last week, the total inventory of scrap factories remained almost unchanged and currently amount to 110 thousand tons Metallurgists while unable to radically improve the situation with the formation of residues on the background of short supply of scrap and the absence of reduced demand for imported raw materials. Interestingly, the current performance of stocks by almost 56 thousand tons less than the average level, which strongly supports the procurement prices. Currently, five of the enterprises have a critically low inventory. Among them are Azovstal, MMK im. Lenin, "Elektrostal", Donetsk EMZ and "Energomashspetsstal". It should be noted that the first four are the biggest consumers of scrap in the domestic market, and the complex situation with the formation of a sufficient volume of reserves at these plants creates good conditions for higher purchase prices for scrap.
Thus, the main feature of the development of the market last week was the preservation of a significant short supply of scrap in the background of a stable purchase price of the plants.
 
Yuri Dobrovolsky,
The "Delphica"Project
 
HELP
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