The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap in Russia’s Baltic Sea region increased by $41/mt on Monday, while the index in the Black Sea region rose by $37/mt. Both indices settled at $231/mt fob.

 

A global shortage of ferrous scrap and rising demand from countries like Turkey has turned the Russian scrap export market bullish. Several suppliers from the south of the country sold short-sea cargoes to Turkey at higher prices. The most recent deals were closed at $250 for HMS 1&2 (90:10) from Rostov-on-Don and at $251/mt cfr for HMS 1&2 (90:10) from Taganrog in the middle of last week. A3 scrap from Rostov-on-Don was traded at $248/mt cfr earlier. Exporters target $255/mt cfr both for HMS 1&2 (90:10) and A3 scrap now.

 

Suppliers from St Petersburg are yet to resume deep-sea cargo sales to Turkey and are watching the situation carefully as they have low inventories and slow collection. Some Turkish mills are checking offers from St Petersburg, but they are limited, and exporters expect prices to reach $260/mt cfr.

 

Scrap collection has been difficult in Russia amid the COVID-19 spread. The weekly Davis Index for A3 scrap increased by Rub1,425/mt ($19/mt) in St Petersburg dock to Rub13,900/mt delivered on Monday, but remained flat in Rostov-on-Don dock at Rub11,500/mt delivered.

 

($1 = RUB73.56)

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