KYIV. July 14 (Interfax-Ukraine) – Exports of scrap ferrous metals in June this year amounted to 230,000 tonnes, which is the highest monthly value for the last ten years, according to a press release issued by state enterprise Ukrpromzovnishekspertyza.
The press release states that the last time a higher export performance per month was recorded in November 2004 (260,000 tonnes), when over the year exports came to 2.5 million tonnes.
“Such a significant rise in scrap metal supply to foreign markets in June this year was due to exporters’ fulfilling contracts, which were signed at the peak of demand in May. Many vendors understood the inevitability of the decline in export prices during Ramadan, when business activity in Turkey traditionally reduces. Therefore most exporters tried to sell available raw materials before the Muslim religious holidays,” Ukrpromzovnishekspertyza Deputy Director Yuriy Dobrovolsky said.
According to him, the exporters’ actions were fully justified, as prices for exported Ukrainian scrap metal, increasing from $210-220 per tonne FOB in April to $250/tonne FOB in May, in early July again fell to $200-210/tonne FOB.
At the same time, the geographical structure of exports remains stable from month to month.
“In June, about 182,000 tonnes, or 80% of scrap metal, was delivered to Turkey. At the same time, exporters shipped 19%, or 45,000 tonnes of raw materials, to Moldova,” the expert said.
