The increasing deep sea prices fixed in deals to Turkey, the generally positive situation in the steel markets and tight scrap availability have resulted in bullish sentiment among Baltic region-based exporters, specifically Russian exporters. According to sources, Russian exporters’ purchase prices for HMS I/II 80:20 scrap have increased by $8-11/mt (RUB 500-800/mt) since earlier this week to $252/mt (RUB 19,200/mt) CPT. “Prices delivered to ports have risen significantly and mills’ purchase prices are low. Moreover, mills pay deferred, while exporters pay in cash, which is another advantage for collectors to deal with them,” a Turkish trader said. Another trader agreed that the scrap allocation in the region is rather low, which is heating up the market and prices.
Local mills’ scrap purchase prices in Russia have also increased since early this week by around $5-6/mt (RUB 300/mt). According to sources, the levels in the central and southern regions of Russia are as follows:
Russia: mills purchase prices for 3A grade
Region |
Transportation |
RUB/mt |
$/mt |
Central |
Railway, FCA |
18,900-19,200 |
249-252 |
Southern |
Auto, CPT mill |
19,450-20,900 |
256-275 |
However, sources believe that early next week both mills’ and exporters’ prices may undergo a further upward revision, SteelOrbis understands.
Prices exclude 20 percent VAT.
$1 = RUB 76.05