Russian scrap exporters raise purchase prices, mills to follow

The improving market situation for steel scrap globally has resulted in another rise in exporters’ scrap purchase prices in the Baltic region of Russia. The companies have been seeking to secure their needs, but also the tough weather conditions in Russia, especially in the Central and Ural regions, have contributed to the price increase. As a result, over the past week Baltic region-based exporters’ A3 grade scrap purchase price has increased by $12/mt (RUB 700/mt) to $322/mt (RUB 23,700/mt) CPT.

In the meantime, mills in the Central and Ural regions of Russia have kept their purchase prices stable for now in the local currency, with minor changes in US dollar prices. The level in the Southern region has dropped by $12/mt (RUB 1,000/mt), but the price may soon be invalid. Overall, the producers are expected to increase their purchase prices, partly due to rising exporters’ levels but also due to severe winter conditions, affecting collection and transportation, in the Central and Ural regions specifically. “Scrap collection in Russia decreased in all the regions over the past two weeks and is at around 70 percent from last year’s figures. This is a result of low temperatures and heavy snow. Therefore, a further price decrease [for scrap] is rather doubtful,” a steel producer told SteelOrbis.

Russian mills’ purchase prices for A3 grade

Prices exclude 20 percent VAT.

$1 = RUB 73.5