Russian scrap prices are expected to fluctuate

The cost of ferrous scrap in Russia has increased by another 5-10% since the beginning of the year, depending on the region. May prospects for scrap trading remain mixed, experts predict. Reports indicate possible price volatility for Russian 3A grade scrap in light of the difficult situation on Asian markets. According to estimates, prices for 3A scrap will be set at $355 per tonne CFR. It is forecasted that quotations in June and July will drop to $345 per tonne CFR, after which they will stabilise. Scrap prices in the region will be supported by the Chinese market and higher finished product costs due to production constraints and increased demand for steel. Volatility in US scrap prices will support export markets.