The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap fell by $26/mt to $401/mt fob Baltic Sea and by $30/mt to $405/mt fob Black Sea on Monday in a bearish market.
Trading remained on hold, especially to Turkey, in the Russian export ferrous scrap market amid a lack of buyer interest. Turkish mills are currently focusing on rebar sales and anticipate lower offers for scrap, but most Russian recyclers chose to follow the cues of exporters from other countries and stepped back instead of lowering their offer prices.
Although Russian suppliers did not receive firm bids from Turkish importers, market participants have heard that buyers expect prices for A3 material to drop to $430/mt cfr and lower.
Collection prices for ferrous scrap decreased in Russia due to the weak export market. As a result, the weekly Davis Index for HMS 1&2 (80:20) or A3 scrap declined by RUB1,650/mt ($22/mt) to RUB24,350/mt delivered St Petersburg dock and by RUB1,500/mt ($20/mt) to RUB20,400/mt delivered Rostov-on-Don dock on Monday. However, some scrap collectors are still ready to pay a premium of RUB200-300/mt ($3-4/mt) for large volumes of the material.
($1 = RUB75.70)