Scrap prices expected to stabilize in Russia

The main factor in balancing the price will be relatively low demand from metallurgists amid a slight increase in rebar prices. In addition, there is a sufficient amount of scrap supply on the market, and the trend towards self-sufficiency of individual plants remains.

Based on the results of February, the average price for ferrous scrap decreased by 1,000-1,600 rubles per ton, to 21,200-24,000 rubles per ton ($236-270).

In February, most metallurgical enterprises fulfilled their raw material purchase plans. The volume of rail shipments remained at a relatively low level, and scrap consumers compensated for low purchasing activity by using warehouse stocks. 

In March, TransLom expects that in the Central Federal District, ferrous metal prices will remain at 24,000 rubles per ton ($236).