In April Ukraine saw a surplus of scrap because of the drop in steel manufacture, but summer will bring the scrap shortage back.
“A lot of things happened in April. First of all, the shut down of capacities on the uncontrolled territories, resulting in the scrap offer surplus, while in the first quarter there was a lack of it”, Interpipe chief economy and finances manager Denis Morozov said.
At the same time, in May the surplus will be gone.
“Summer is coming, when scrap procurement traditionally drops by some 40%. So our scrap stocks will be gone”, he added.
Scrap exports increased.
“But I hope exports will not exceed last year’s level. Now local price is higher than export price. This means, it is more advantageous to sell on the local market than to export”, he said. (Ukrainian metal)