Despite the small downward correction seen compared to last week, Russia expects to see an increase in local scrap purchase prices towards the second half of May. The key reason is the significant uptrend in Turkey’s import scrap market which, moreover, has the potential to firm up further. “For now, exporters will increase their purchase prices and the mills will follow by the end of May,” a local Russian producer told SteelOrbis. This week, exporters from the Baltic region raised their A3 purchase prices by $10/mt (RUB 500/mt) to $316/mt (RUB 23,500/mt) CPT.
Moreover, a lot of discussions are heard regarding the outcome of the export scrap restriction which was announced at $54 (€45/mt) from February 1, 2021, for six months. As a result, the market is trying to predict the next move. Some believe the restriction will be eased to the previous five percent, while others think a quota may be implemented, €90/mt duty, or even the closure of some of the exporting ports, sources believe.
Mills A3 scrap purchase prices in Russia, RUB/mt ($/mt)
|
Region |
Transportation |
Price (RUB/mt) |
Price ($/mt) |
Price change (RUB/mt) |
Price change ($/mt) |
|
Central |
Railway, FCA |
26,200 |
352 |
-500 |
-4 |
|
Ural |
Railway, FCA |
27,100 |
361 |
-200 |
0 |
|
Southern |
Railway, FCA |
26,000 |
349 |
n/a |
n/a |
$1 = RUB 74.45