Trade Body Cuts Ukraine's Scrap Supply Outlook

SEATTLE (Scrap Monster):  UAVtormet- Ukraine’s ferrous scrap industrial trade body announced revised outlook on country’s crude steel production and scrap supply for the year 2020.

According to the revised outlook, the country’s annual crude steel production is estimated to total around 20 mn t in 2020, down by 4.3% when matched with 2019. This is lower by 7.5% from the previous estimate, which had projected an output of 21.5 mn t for the year. The revision is based on the country’s steel output and exports during the first four months of the year.

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The country would require approximately 2.75 mn t of ferrous scrap for crude steel production in 2020. UAVtormet estimates indicate 10.2% decline in yearly scrap consumption. The Ukrainian ferrous scrap imports are likely to see marginal rise from 49,900 t in 20019 to 50,000 t in 2020. Meantime, exports are likely to surge higher by 18% year-on-year from 42,200 t to 50,000 t, driven by lower domestic scrap demand.

Ukraine produced 6.731 mn t of crude steel during Jan-Apr ’20, down by 9.6% over the previous year. Meantime, the revenues from ferrous scrap exports recorded year-on-year decline by 15.5% to $2.70 billion during the four-month period.