Rise in price of scrap is not conducive to the growth of scrap collection in Ukraineexpert
In August, the scrap metal industry in Ukraine has collected about 432 thousand tons, which is only 3% more than in July. Thus for the last five weeks of the purchase price of the plants increased by a total of 250 UAH . / Ton, and in the regional procurement markets for 250-300 UAH . / Ton. As a result, the current average price in plants is 2365 UAH . / Ton. Such information is contained in the monthly survey of the scrap market , conducted SE ” Ukrpromvneshekspertiza ” ( SEA ).
Despite a marked rise in the cost of scrap at the regional level, collection increased only in certain areas , and then only slightly. The majority of complains about the inability of suppliers to provide improved collection of scrap without any interest to at least 2500 hr . / Ton , as industrial enterprises refuse to hand over raw materials at current prices. In turn, factories and exporters argue reluctance to further appreciation of almost zero margin trading. Also in the near future the market is expected to decline rental quotes , which also contributes to the growth of domestic scrap prices . ” However, consumers of raw materials may still raise rates by 50-150 UAH . / Tonne in the case of the long-awaited launch of Donetsk EMRs , monthly demand is around 70 tonnes. scrap , which is around 15% from current rates of harvesting – predicts Yuri Dobrovolsky, Head of Marketing SEA – another price growth could significantly increase scrap collection and, therefore, reduce the deficit. So far, most of the plants will replace scarce liquid iron scrap or import raw materials from Kazakhstan.