The weekly Davis Indexes for HMS 1&2 (80:20) or A3 scrap from Russia’s Baltic Sea and Black Sea regions dropped by $16/mt and $20/mt, respectively. Both indexes settled at $438/mt fob on Monday.
Export ferrous scrap prices in Russia are under pressure from rising freight rates. Sporadic bids and offers for HMS 1&2 (80:20) from St Petersburg have remained at $490-495/mt cfr Turkey and $500-510/mt cfr, respectively, over the past two weeks resulting in an inactive market.
Turkish mills are bidding $450-460/mt cfr for A3 material from Rostov-on-Don, but this price level is not acceptable for suppliers, who have stepped back from the market. On the other hand, a South Korean mill accepted an increase and purchased 57,000mt of A3 material from the Far East of Russia at $518/mt cfr last week.
Collection prices in Russian export yards decreased with the weekly Davis Index for A3 scrap declining by RUB1,625/mt to RUB25,850/mt delivered St Petersburg dock and by RUB450/mt to RUB24,025/mt delivered Rostov-on-Don dock.