The weekly Davis Index for HMS 1&2 (80:20) and A3 scrap decreased by $10/mt to $261/mt fob Baltic Sea and by $14/mt to $258/mt fob Black Sea on Jan 20, as prices for exports declined and collections rose.
Market participants’ prices vary in the range of $285-295/mt cfr Turkey for HMS 1&2 (80:20) from St Petersburg, and in the range of $280-285/mt cfr Turkey for the same material from Rostov-on-Don.
The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap in St Petersburg dock advanced by Rub400/mt to Rub14,925/mt delivered on Jan 20, in Rostov-on-Don dock – by Rub300/mt to Rub14,700/mt delivered.
Turkish buyers have been pressuring Russian scrap exporters to accept lower prices, with mills citing weak steel product sales and surplus scrap. However, growing competition with steelmakers in their country has caused Russian dock collection prices to increase and, consequently, exporters are incapable of providing meaningful discounts. Additionally, scrap inventory is low—while some exports have no material, three sellers have between 15,000mt and 30,000mt in their docks.