The divergence was supported by seasonal steelmaking demand, limited scrap availability and domestic mills' active procurement.
Domestic prices for 3A-grade ferrous scrap increased across all federal districts. According to the Translom Index, the average scrap price reached RUB 21,529/t by the end of July, marking a 29% increase from early June and the highest level recorded over the past year.
On an FCA basis, 3A scrap prices climbed to RUB 22,246/t in Tatarstan (+26%), RUB 23,007/t in the Moscow region (+33%), RUB 24,079/t in Yekaterinburg (+23%) and RUB 20,659/t in Novosibirsk (+33%). Delivered (CPT rail) prices also strengthened, reaching RUB 26,371/t in southern Russia (+29%), RUB 25,494/t in the Urals (+22%), RUB 24,609/t in the central region (+25%) and RUB 19,305/t in Siberia (+5%).
Compared with the same period last year, Russia's average ferrous scrap price has increased by 39%, or around RUB 6,000/t. The strongest annual gains on an FCA basis were recorded in Tatarstan (+46%), the Moscow region (+46%) and Yekaterinburg (+41%).
Although demand is expected to soften in the second half of the year, suggesting that current price levels could represent a short-term peak, tighter scrap collection and structural changes in the industry are expected to continue supporting domestic scrap prices over the medium term.
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