The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap in Russia’s Baltic Sea region decreased by $10/mt to $225/mt fob on Monday, while the index in the Black Sea region dropped by $12/mt to $218/mt fob.
The Russian export ferrous scrap market became bearish as demand is weak and the main buyers—Turkish mills—insist on lower prices amid sluggish steel product sales. Bids from Turkey were reported at $240/mt cfr for A3 scrap both from St Petersburg and Rostov-on-Don at the beginning of this week.
Negotiations resulted in a deal late last week after a supplier from St Petersburg agreed to sell 26,000mt of HMS 1&2 (80:20) at $242/mt cfr and 4,000mt of bonus material at $252/mt cfr to Turkey. The cargo is due to be shipped in the first half of June. A previous transaction to Turkey from Russia was fixed at $255/mt cfr HMS 1&2 (80:20) and at $265/mt cfr for bonus material in around mid-April.
The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap increased by Rub350/mt ($5/mt) in St Petersburg dock to Rub14,850/mt delivered on Monday, and by Rub850/mt ($11/mt) in Rostov-on-Don dock to Rub13,500/mt delivered. Exporters raised collection prices last week amid slow inflow of the material, but some are planning to decrease them after the sale from St Petersburg.
($1 = RUB74.48)