Procurement of scrap metal in Ukraine will decrease, and purchase prices will rise sharply - UAVtormet
The procurement of scrap metal in Ukraine at the end of 2020 will decrease by 20% compared to 2019 from 3.36 to 2.8 million tons. The main source of scrap, according to UAVtormet, is still amortization scrap, which occupies 75% of the scrap collection structure. 8% comes from household scrap. Another 5% of raw materials on the Ukrainian market are supplied by transport companies.
For 11 months of this year, 2.768 million tons of scrap metal were procured in Ukraine. Of these, about 33 thousand tons were exported.
Last week, metallurgical enterprises of Ukraine increased the purchase prices for scrap by another 450 hryvnia - up to 7 350 hryvnia per ton. The main driver was the prices of raw materials on the world market and the improvement in the market conditions.
Remains of scrap in the warehouses of steel producers increased to 136 thousand tons compared to 125 thousand tons in the previous week. Inventories in working days are 15 days, which is slightly higher than the standard value.
Domestic scrap price forecast
According to the analysts of the State Enterprise "Ukrpromvneshexpertiza", in the coming weeks, in the domestic market of Ukraine, metallurgical plants may go to another increase in purchase prices against the background of rising billet prices and a high probability of continued increase in the cost of scrap metal in foreign markets.
Forecast average scrap price next week - UAH 7,500 per ton.