Steel producers in Russia have significantly increased their domestic scrap purchase prices over the past week. The key reason is the mills’ target to secure the required tonnages ahead of the expected seasonal improvement in the finished steel segments. In addition, the stocks of scrap in the market are reportedly low, especially in the southern region of Russia. As a result, the mills across the country have increased their purchase prices trying to keep up the inflow of raw materials.
Russian mills’ purchase prices for A3 grade
|
Region |
Transportation |
Price (RUB/mt) |
Price ($/mt) |
Price change (RUB/mt) |
Price change ($/mt) |
|
Central |
Railway, FCA |
28,400 |
374 |
+900 |
+13 |
|
Ural |
Railway, FCA |
27,700 |
364 |
+600 |
+8 |
|
Southern |
Auto, FCA |
26,800 |
353 |
+1,300 |
+11 |
Some concerns exist regarding the export segment, taking into account the cautious rebound of scrap import prices in Turkey. For now, the exporters’ A3 scrap purchase levels in Russia’s Baltic region remain unchanged at $309/mt (RUB 23,500/mt) CPT. However, some sources report that the special price for those in need of urgent restocking is $336/mt (RUB 25,500/mt) CPT.
Prices are indicated without 20 percent VAT.
$1 = RUB 76