The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap in Russia’s Baltic Sea region was unchanged at $232/mt fob on Friday, while the index in the Black Sea region increased by $4/mt to $229/mt fob.
Trading activity increased in Russia’s ferrous scrap export market, as demand from Turkish mills, the country’s main buyers, significantly improved and they agreed to accept higher prices during the latter half of the week.
Negotiations resulted in deals between Turkish mills and two suppliers from St Petersburg. One exporter agreed to $247/mt cfr for HMS 1&2 (80:20) and to $257/mt cfr for bonus material, while the other signed a contract at $250/mt cfr for HMS 1&2 (80:20) and at $260/mt cfr for bonus material. Each supplier sold around 30,000mt. Earlier in the week, bids from Turkish producers were at $240-242/mt cfr.
A supplier from the northern Russia sold HMS 1&2 (95:5) to Turkey for $260/mt cfr, with around 17,500mt to be shipped from Murmansk and 7,000mt to be shipped from Arkhangelsk.
The weekly Davis Index for A3 scrap in St Petersburg dock declined by RUB250/mt ($3/mt) to RUB14,750/mt delivered on Friday. Exporters began reducing collection prices because they understood that $255/mt cfr Turkey for Russian-origin HMS 1&2 (80:20) is not achievable.
The weekly Davis Index for A3 scrap in Rostov-on-Don docks was flat at RUB13,500/mt delivered. Most suppliers from the Russia’s south sold their cargoes to Turkey at $245-248/mt cfr for A3 scrap around 10 days ago.
($1 = RUB71.92)