The latest industrial data indicate that domestic supplies of ferrous scrap could not meet the needs of a metallurgical enterprise in Ukraine in the initial seven-month period of this year. And this despite the significant reduction in exports of ferrous scrap from the country after the Ukrainian government increased the export duty on scrap. By the way, the export duty will increase from current levels of 42 euros per ton from September 1, 2019.
According to the data, scrap deliveries in the domestic market in July this year amounted to 192,000 tons. This is sharply lower by 41% compared to the previous month. The supply did not meet the requirements of steel producers by 4%. Consequently, the level of stocks of Metallurgists decreased by almost 32% to 150,000 tons on July 31, 2019.
Domestic scrap metal supplies for the seven-month period from January to July of this year amounted to 1.88 million tons, which decreased slightly by 1% compared with the corresponding period a year earlier. Also, the supply was less than the demand by almost 1%.
According to market participants, export prices for scrap in the EU, Turkey and Russia were higher than those offered by domestic steel producers, which forced scrap collectors and suppliers to export the material, rather than supplying it to the best domestic plants at a lower price.
The Ukrainian scrap collection also recorded a noticeable decline in January-July 1919, mainly due to lower domestic scrap prices. Harvest decreased by 12% year on year, amounting to 1.92 million tons.
