OREANDA-NEWS. In January-September 2006, the Ukrainian enterprises on operations with scrap ferrous metals have reduced export of scrap metal by 45,3 % to 580,2 thousand tons in comparison with the same period of 2005.

According to Interfax-Ukraine, the representative of the association “UAVtormet” noted that 70,1 thousand tons of scrap metal were exported in September of this year.

For nine months 4,915 million tons of scrap metal were sold to the metallurgical enterprises of Ukraine, and for analogous period of 2005 - 4,524 million tons.

During the balance meeting of representatives of the enterprises of mining-metallurgical complex of Ukraine held in Dnepropetrovsk, negotiations of representatives of scrap metal-collecting enterprises and metallurgical enterprises were held. It has been noted during the negotiations that scrap metal-collecting enterprises have a number of problems with reception of licenses for operations with scrap ferrous metals, in particular, at registration of export deliveries.

The metallurgical enterprises and scrap metal-collecting enterprises have agreed about the recommended price till November 1 of this year on deliveries of scrap metal to the domestic metal works at the rate of UAH 1,225 thousand for a ton including VAT. In the future, the recommended prices on first half of November (up to the following balance meeting) are established at the rate of UAH 1,175 thousand for a ton.

It was also noted at the meeting that 8,5-8,7 million tons of scrap metal, or 720 thousand tons of a breakage a month will be needed at the increased plans of the metallurgical enterprises on melt of steel for 2007, whereas this year the maximal gathering of scrap metal a month was 630-640 thousand tons.

It was informed earlier that the rise in prices on the Ukrainian scrap metal on the average by 30 % was observed from the beginning of 2006 both in the home market (from $160-170 for a ton in January up to $220-225 for a ton in September), and at export (from $170-180 for a ton in January up to $240-245 for a ton in September).

At the same time, it was predicted that the world prices for scrap metal in 2007 will be fixed at the rate of $240-260 for a ton of FOB with seasonal fluctuations in greater or smaller party by $10-20 for a ton.