Domestic purchase prices for scrap in Russia have increased in the local currency quite significantly over the past two weeks, reflecting mainly producers’ policy to secure their required volumes. One reason is the increased local prices for flat products in Russia, having provided more room for higher raw material purchase prices. Another factor, according to sources, is the situation with transportation. “There is a certain problem on the railway regarding goods deliveries, which results in lower-than-expected inflow of scrap to mills’ stocks,” a producer told SteelOrbis.
However, in US dollars, the prices for scrap in Russia have slid, following the national currency devaluation related to geopolitical tensions and recently imposed sanctions. The scrap market players are expecting the prices in roubles to continue rising for now, offsetting devaluation, but some of them believe prices are nearing the peak. “The increased scrap collection, the improvement of the railway situation and higher scrap inventories at the sellers’ side will help scrap prices stabilize,” a source mentioned.
Russia: A3 scrap purchase prices, RUB/mt ($/mt)
Region |
Transportation |
Price (RUB/mt) |
Price ($/mt) |
Change (RUB/mt) |
Change ($/mt) |
Central |
Railway, FCA |
31,800 |
397 |
+1,000 |
-17 |
Ural |
Railway, FCA |
31,400 |
392 |
+1,500 |
-10 |
Southern |
Railway, CPT |
31,600 |
395 |
+2,100 |
-2 |
Exporters (Baltic region) |
Railway, CPT |
28,000 |
350 |
+1,300 |
-9 |
$1 = RUB 80.1
