Domestic scrap procurement prices are rising in Russia

Starting from March 1st, the domestic scrap procurement prices increased in Russia. The increase reached about Ruble 300-500 per ton (approx. $14/ton). Thus, A3 grade scrap purchase price of Severstal increased to Ruble 5,400-5,450 per ton (about $192-194 per ton), as compared to Ruble 4,850-4,950 per ton (about $172-176 per ton) at the end of February. The purchase prices of NLMK, Volzhsky Tube Work (VTZ), and UralStal are at Ruble 5,100-5,300 per ton (about $181-187 per ton), whereas the price of Magnitka is Ruble 4,800-5,100 per ton (about $177-181 per ton). The local scrap traders believe that the current price rise will continue and will reach an average price of Ruble 6,000 per ton (about $215 per ton) by the end of March.