Last week, the Ukrainian steelmakers took a break after the decline in prices to assess the impact of price adjustment on the dynamics of scrap shipments. In the result, the average quotation of the domestic market remained unchanged and currently totals 2340 UAH/t or 293 USD/ton, excluding transport tariff, which is the minimum value over the past two months.
The fall in the price of scrap a week earlier resulted in negative dynamics of supply. So the traders who have tried to unload the raw material before the price reduction, does not currently have significant reserves in the warehouses. In total, over the last week metallurgists were shipped about 75 thousand tons, which is 17,7 thousand tons less than the previous figures. Note that the current indicators of supply are at the lowest level for the last 2.5 months.
Among plants "Arcelor Mittal" to the greatest extent reduced purchases of scrap among all plants. So over the last week, the company has purchased only 8.7 thousand tons, which is twice less than the previous week. Also of note is the reduction in the acquisition of scrap Enakievo MK, which last week purchased only 2 thousand tons, which is the minimum value over the past few years. At the same time MMK im. Ilyich went to the maximum volume of purchases over the past two months is 12.8 thousand tons.
Over the past week the indicator cover requirements for imported scrap decreased to 70% – the lowest value since the beginning of July this year. Such a significant drop in this indicator due to a decrease in the supply of scrap in the background of the increasing demand for imported raw materials. It is obvious that the low value of this indicator supports the purchasing prices on the domestic market of the country.
The balance of scrap supply almost all the metallurgical enterprises had scarce nature. The greatest deficit was observed at the largest enterprises – yenakiieve MK, "Arcelor Mittal" and Donetsk EMZ. Note that the constant of shortage of raw material forcing steel producers to consume the inventory. So over the past week the balance rate of scrap fell to the lowest level since the beginning of the year and currently amounts to 69 thousand tons.
In the context of individual plants the greatest decrease in inventory occurred at the "Arcelor Mittal" (-10 kt), because of the significant shortage of raw materials at this plant. So at the moment, the physical volume of stocks for this company is 18 thousand tons – the lowest since the beginning of April this year. It should be noted that the inventory of scrap on the boiler. Lenin and Donetsk EMZ decreased almost to zero values and amount to 0.3 and 0.8 thousand t, respectively. At the "Elektrostal" (Kurakhovo) reserves fell to a critical level – 0,6 thousand tons. in addition to these enterprises, three are in the "zone of risk" (yenakiieve MK, MK "Azovstal" and DMK im. Dzerzhinsky). In such circumstances, steel producers may be forced to cut steel production, as at the moment the increase in procurement prices for scrap unlikely, and the preservation of the rate of decline in inventory will lead to disruptions in the implementation of production programs.
Thus, over the past week the trend of weak ampotaka and deterioration of stocks among consumers was saved.
 
Yuri Dobrovolsky,
The "Delphica"Project
 
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