CIS scrap suppliers hike price amidst drop in supplies

Author: Paul Ploumis
12 Mar 2015 Last updated at 05:12:50 GMT
MOSCOW (Scrap Monster): According to market sources, the CIS scrap suppliers have hiked prices on account of lower supply. Meantime, the trend is expected to continue, despite Turkish importers’ fear that the country’s finished steel sector may remain flat.

As per market reports, a shipment of A3 scrap was sold from Rostov-on-Don to Turkey at a price of $242-245/t CFR. This is $14-$17 /t higher when compared with the previous week’s prices. Meanwhile, shipments from Ukrainian traders quoted at $230/t CFR, higher than previous week’s price by $5/t. Another shipment of A3 was sold from Baltic ports at a price of $252/t CFR to Turkey. The prices rose by $12/t when compared with the nominal prices of last week.

Meanwhile, activity levels remained low as traders hope for further rise in shipment prices. The strengthening rouble makes it less profitable for exporters, as prices continue to remain lower. The scrap bids are expected to rise as supply of scrap continues to remain at unsatisfactory levels, said traders.

The prices in Southern ports too have increased by $7-$10/t CFR on a weekly basis. The Baltic ports recorded lower price increase to the tune of $2/t CFR. Meantime, Russian exporters in the Far East were forced to settle for reduced prices. A shipment of A3 scrap was sold at a price of $235/t CFR to South Korea, dropping by $3/t CFR when compared with the previous contract.