Market Report, Ferrous Scrap, Russia

Ferrous Scrap>> Russia and CIS>> Andrey Balashov, TYOR Commercial Inc.

Prices are rising quite steadily. Steel mills are paying about $282 for ferrous scrap. Steel mills are receiving enough material to power their current needs plus they are building stock. Also, world markets are quite active, which allows exporters to [stay busy].

So, business is quite healthy. We just recently had some snow in the northern part of Russia, which doesn’t help collection. Winter is coming. There are no changes from the basic point of view. Taxes and export duties are the same. There are no big changes.

Mills are paying quite promptly, with maximum one or two weeks delay. There are no big problems.

I think the weather is the main factor. The demand for steel products and demand for scrap inside of Russia is quite strong. We are quite active. The only factor that can change the situation is the winter. Right now people are not sitting on many stocks. What is collected is sold, there is not too much creation of stock because prices are not growing so fast. We’ve seen them grow $10 per ton for the last month, which is not much.

Andrey Balashov of TYOR Commercial can be contacted at scrap@tyor.ru.