Steel producers in Russia have been gradually decreasing their scrap purchase prices, aiming to secure the raw material at a lower cost. Import scrap prices in Turkey have rebounded to $410/mt for HMS I/II 80:20 in the latest deals and currently the market is waiting for new transactions to clarify the further trend of the market. Still, most sources believe that scrap prices in Turkey are likely to firm up further, which is one of the reasons for exporters in Russia’s Baltic region to slightly raise their purchase prices, SteelOrbis understands. “There is a good chance that the import prices in Turkey will rise again to a level at which the exports from Russia even with the duty will be still profitable for sellers. Therefore, they might aim to secure tonnages. Also, let’s not forget the existing commitments for February-March shipments,” a trader said. As a result, the exporters’ purchase prices for A3 grade have increased by $4/mt (RUB 200/mt) since early February to $310/mt (RUB 23,000/mt) CPT.
Russian mills’ purchase prices for A3 grade
Region |
Transportation |
Price (RUB/mt) |
Price ($/mt) |
Price change (RUB/mt) |
Price change ($/mt) |
Central |
Railway, FCA |
24,500 |
331 |
-1,000 |
-13 |
Southern |
Auto, CPT mill |
23,000-23,500 |
311-318 |
- |
- |
Ural |
Railway, FCA |
26,000 |
351 |
-300 |
-4 |
Prices exclude 20 percent VAT.
$1 = RUB 74