The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap in Russia’s Baltic Sea region climbed by $2/mt to $240/mt fob on Monday and inched up by $3/mt to $235/mt fob in the Black Sea region amid muted business activity.
The Russian export ferrous scrap market has been subdued since the second half of June as demand for Russian material from Turkish mills remains weak. Last week, bids were heard at around $250/mt cfr for HMS 1&2 (80:20) from St Petersburg, while some mills accepted $255-256/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region. One Russian exporter tried to negotiate at similar price levels, but no deals have been reported so far.
Scrap availability from Rostov-on-Don to Turkey became limited as most suppliers stepped back and focused on sales in the domestic market where exporters found prices were more attractive.
Collection prices trended sideways in Russia. The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap slid by RUB50/mt ($1/mt) in St Petersburg dock to RUB15,200/mt delivered on Monday and was flat at RUB13,650/mt delivered in Rostov-on-Don dock. Some suppliers in Rostov-on-Don decided to suspend collection for export because local buyers pay better prices.
($1 = RUB71.80)