Russia's scrap procurement prices rise

After approximately a month-long decrease in procurement prices for scrap performed by Russian metallurgical enterprises, majority of them announced the positive correction for the procurement prices of scrap last week. Thus, Severstal rose the procurement price for scrap A3 by Ruble 200 per ton (approx $7.4) to Ruble 5,300 per ton (approx $196), Voljzkiy TZ and Red October rose the procurement price for scrap A3 by Ruble 100-300 per ton (approx $ 7.4) to approximately Ruble 4,800-4,950 per ton (approximately $180.6). The more stable procurement prices for scrap are seen at MMK, NLMK and Mechel, whose procurement prices for A3 scrap were still considerably high throughout May, regardless the decrease performed at the beginning of the month. The main reasons behind the rise in the procurement prices for scrap are the scrap price rise in the world market and decrease in Russian scrap collected volumes.