The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap in Russia’s Baltic Sea region decreased by $5/mt to $244/mt fob on Monday and dropped by $10/mt to $237/mt fob in the Black Sea region amid suspended trading.
Negotiations are on hold in Russia’s ferrous scrap export market. Most suppliers believe it is meaningless to make offers to Turkish buyers as mills in Turkey stepped back after booking significant tonnages of scrap and switched to steel product sales.
Market sentiment has become negative among suppliers because Turkish mills expect scrap prices to fall to $250/mt cfr for HMS 1&2 (80:20) in deep-sea cargoes and lower for the same grade in short-sea cargoes amid healthy availability of scrap.
In the meantime, collection prices are yet to decline in Russia. The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap climbed by Rub100/mt ($1/mt) in St Petersburg dock to Rub15,150/mt delivered on Monday as all exporters collected materials after active sales. However, they remained unchanged in Rostov-on-Don dock at Rub13,650/mt delivered.
($1 = RUB69.08)