The weekly Davis Index for HMS 1&2 (80:20) or A3 scrap in Russia’s Baltic Sea region increased by $3/mt to $261/mt fob on Monday and rose by $5/mt to $263/mt fob in the Black Sea region.
Positive sentiment reigned in the export market as prices increased amid strong demand in Turkey. Russian ferrous scrap exporters closed several deals and achieved higher prices in the first week of August. A supplier from Rostov-on-Don sold two cargoes of A3 material at $280-284/mt cfr Turkey, while a previous transaction was fixed at $274/mt cfr for the same material in the second half of July.
Exporters from Far East Russia reached agreements with a South Korean mill at $258.50/mt cfr for 10,000mt of A3 scrap and at $265/mt for small tonnages of the same grade. Buying activity was generally slow in South Korea, though the importer had no choice but to accept an increase by $4.50-11/mt cfr due to a firm uptrend in the global market.
There were no sales reported from St Petersburg early in August, however, most suppliers believe that Turkish mills still require material for September shipment and are targeting $285-290/mt cfr for HMS 1&2 (80:20).
Collection prices for ferrous scrap also increased in Russia amid slow inflow as exporters competed for tonnages to complete their cargoes. One supplier from St Petersburg was heard to have sold around 90,000mt of scrap to Turkey for August shipment. As a result, the weekly Davis Index for HMS 1&2 (80:20) or A3 scrap rose by RUB875/mt ($12/mt) at St Petersburg dock to RUB16,400/mt delivered on Monday and by RUB700/mt ($9.50/mt) to RUB14,900/mt delivered at Rostov-on-Don dock. Scrap collectors are also ready to pay a premium of RUB200-300/mt ($3-4/mt) for the supply of 100mt and more.
($1 = RUB73.51)