In June Ukrainian companies received 299 thousand tons of scrap, up by 5% MoM, or by 13 thousand tons.
According to the state enterprise Ukrpromvneshexpertisa, the increase was the result of the traders quickly selling their stocks in fear of the further drop in local market purchasing quotations.
In June local metal companies decreased their purchasing prices of scrap twice, due to the high scrap stocks and difficulties with selling rolled metal, as well as the prohibition to export scrap.
“In June scrap market entailed almost no deficit, and that allowed metal companies to increase stocks. Moreover, there was almost no competition on behalf of scrap exporters. Thus buyers were able to dictate their prices”, said Ukrpromvneshexpertisa deputy director Yuri Dobrovolski.
Scrap exports in June dropped by 76% MoM, or by 86 thousand tons, to 27 thousand tons. All the deliveries were carried out on the basis of earlier concluded contracts, new agreements were not signed because of the export prohibition. On the other hand, on July 12, a decree was signed that presupposed the increase of the scrap export duty to 30 euro per ton and cancelled the contract registration. Soon Ukrainian scrap procurers will be able to resume exports.
Experts believe scrap deliveries will decrease because of the local market purchasing price drop. But in September deliveries will increase, due to the demand and price rise. For August-September the price of scrap on the local market is expected on the level of 3400 UAH per ton. (Ukrainian metal)