The average price of 3A-grade scrap delivered by rail in the Ural Federal District stood at RUB 21,842 per tonne, excluding VAT, in May. Throughout the month, prices fluctuated within a narrow range, reflecting relatively steady trading conditions.
Toward the end of May, however, market participants began to report signs of strengthening prices. Industry sources expect scrap prices to increase by around RUB 500 per tonne per week during June, supported by improving demand and tightening supply.
The anticipated price growth is being driven by a modest recovery in purchasing activity from steel producers, particularly those serving the construction sector. In addition, higher pig iron exports have encouraged some domestic steelmakers to increase their use of scrap as a feedstock for downstream production.
Supply-side factors are also contributing to the firmer market outlook. Scrap collection volumes have declined amid the ongoing formalization of the industry, reducing the amount of material available to processors and steel producers.
Despite the emerging upward trend, market participants do not expect a significant surge in scrap prices. A sharp increase in raw material costs could prompt steelmakers to switch to alternative metallurgical feedstocks, limiting the potential for stronger price gains.
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