Russian domestic scrap prices go down

Starting from May 1, majority of Russian steelmakers decreased A3 scrap procurement prices by Ruble 100-180 per ton (about $5). Thus, the current procurement prices of A3 grade scrap of Voljzsky TZ is Ruble 4,450-4,650 per ton (about $167), that of Red October is Ruble 4,700-4,800 per ton (about $174) and that of Tagmet is Ruble 4,850-4,950 per ton (about $180). Mechel's procurement price for A3 grade scrap decreased to Ruble 4,600-4,700 per ton (about $171), Izjstal's to Ruble 4,350-4,500 per ton (about $163). NLMK's and MMK's A3 grade scrap procurement prices decreased by Ruble 200 per ton (about $7) to Ruble 5,000-5,150 per ton (about $187) and to Ruble 4,850-5,050 per ton (about $182) respectively. All prices include VAT and delivery cost. While in domestic market the prices went down, for export direction Russian origin A3 scrap purchase prices have reportedly increased. According to the market players, downward trend in the domestic market and upward trend in prices for export are both temporary and mainly caused by increase in users' inventories in domestic market and the increased demand from some traders for export.