Scrap exporters and local steel producers in Russia continue to adopt rather different policies regarding their scrap purchase price levels. Steel mills are looking to secure scrap volumes, reporting that the collection volumes in the local market have been decreasing lately. As a result, the producers have mainly chosen to increase their A3 purchase prices by RUB 500/mt, having left them almost unchanged on US dollar basis due to exchange rate fluctuations.
Russian mills’ purchase prices for A3 grade
|
Region |
Transportation |
Price (RUB/mt) |
Price ($/mt) |
Price change (RUB/mt) |
Price change ($/mt) |
|
Central |
Railway, FCA |
27,500 |
361 |
+500 |
-1 |
|
Ural |
Railway, FCA |
27,100 |
356 |
+500 |
-1 |
In the meantime, scrap exporters have been trying to lower the price of the scrap they need to purchase, taking into account the so far unfavorable situation in the Turkish market, which remains their key consuming destination. In addition, high freight rates have additionally been restraining their margins and, moreover, the temporary blockage of the Suez Canal is expected to contribute to the further growth of freight charges, SteelOrbis understands. Since earlier this week, some exporters’ A3 scrap purchase prices have decreased by $14/mt (RUB 500/mt) to $308/mt (RUB 23,500/mt) CPT. Others, however, have decided to leave the rouble-equivalent price unchanged at RUB 24,000/mt CFR, which has led to a $7/mt decline to $315/mt CPT in their dollar prices due to currency fluctuations.
Prices are indicated without 20 percent VAT.
$1 = RUB 76.2