The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap jumped by $26/mt to $289/mt fob Baltic Sea and by $14/mt to $281/mt fob Black Sea on Monday amid an export market uptrend.
The Russian export ferrous scrap market is bullish on strong demand in Turkey and a tight supply of the material. Turkish mills need to continue purchasing scrap after they sold significant tonnages of rebar. As a result, Russian recyclers expect higher prices.
Trading was active in Rostov-on-Don in the second week of November. Two cargoes of HMS 1&2 (90:10) were sold at $310/mt cfr Karadeniz late last week, and several cargoes of the same material changed hands in the range of $300-305/mt cfr Turkey a few days earlier.
Most suppliers from St Petersburg preferred to wait with sales to Turkey, anticipating further price increase this week. They plan to resume negotiations shortly and believe that $320/mt cfr for HMS 1&2 (80:20) from Russia is achievable, considering a sale from the UK at $318/mt cfr for the same grade.
Collection prices rose in the Russian market amid positive sentiment on export. The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap increased by RUB525/mt ($7/mt) in St Petersburg dock to RUB18,575/mt delivered on Monday and by RUB400/mt ($5/mt) to RUB17,500/mt delivered in Rostov-on-Don dock.
($1 = RUB76.57)