The situation in the local scrap market in Russia has been controversial this week, taking into account that the mills in most regions have chosen to increase their prices, while the exporters in the Baltic region have decreased their purchase prices, following a steel price rise applied earlier. “The scrap collection in Russia has been decreasing for the fifth week in a row, while the needs of the mills have been increasing. While facing the low scrap inflow, the Russian producers are trying to stimulate scrap shipments through the price increases on their purchasing side,” a source told SteelOrbis.
In the meantime, the difficulties on the exporters’ side in the Baltic region in Russia have cooled down somewhat this week and their A3 grade purchase prices have weakened by $13/mt (RUB 1,000/mt) to $340/mt (RUB 25,000/mt) CPT. Sources believe that the scrap buyers in the region have secured some decent volumes for ongoing business during the previous weeks and are not trying to take it slow. Another reason may be the downtrend in Turkey’s import scrap market, which has been fixed in the latest deals and appeared rather unexpected for a lot of market players.
Russian mills’ purchase prices for A3 grade
|
Region |
Transportation |
Price (RUB/mt) |
Price ($/mt) |
Price change (RUB/mt) |
Price change ($/mt) |
|
Central |
Railway, FCA |
26,000 |
353 |
+900 |
+12 |
|
Ural |
Railway, FCA |
26,300 |
357 |
+300 |
+4 |
Prices are indicated without 20 percent VAT.
$1 = RUB 73.61.