<span>Russian and Ukrainian scrap suppliers have taken little advantage of the activity burst in the Turkish scrap market in the second half of June. St. Petersburg scrap exporters continue to stockpile scrap because their main sales markets remain weak. Besides, offers of their competitors are more attractive due to lower freight rates and because 15% ad valorem export duty complicates sales to foreign markets from Russia. <br> <br> At the moment, the highest bids of the main consumers – Turkish mills – are $320/t c&f, which is no more than $280/t fob with the current freight rates and is unacceptable to the exporters. They can only agree to about $300/t fob but the prices are unlikely to reach this level before the second half of August. But the scrap sellers are supported by Indian traders and buyers from Asian countries (in particular, Pakistan and Malaysia), which are showing interest in purchases of containerized material at this level. <br> <br> Amid extremely weak demand, only few exporters venture to spend the working capital on the stockpiled material, so scrap is purchased at ports at the lowest acceptable prices. In particular, the average purchase prices for A3 scrap at St. Petersburg ports are about $205/t cpt, unchanged from mid-June. Russian Azov-Black Sea suppliers are still buying the material at $205-210/t cpt taking into account currency fluctuations. Yet, some Rostov exporters have backed down against Turkish buyers and sold A3 material at $310-315/t c&f, which corresponds to $280/t fob with the current freight rates – down $10/t from mid-June offers. However, deals were few and now suppliers are insisting on $290/t fob at the lowest. It is anticipation of new contracts that encouraged some scrap sellers to raise purchase prices by $5/t above the average market levels. <br> <br> Most Ukrainian exporters did not take part in trading, considering bids too low. In particular, the latest bids from Turkish consumers reached $313/t c&f Turkey, which means about $290/t fob with the current freight rates. Although this level is above the breakeven point and there were sporadic contracts in late June made at as low as $285/t fob, most companies prefer to wait for at least $320-325/t c&f Turkey (about $300/t fob). Deals at these levels would be profitable enough since exporters are currently buying the material at $225-230/t cpt. <br> <br> Furthermore, if demand from Turkish mills, which cannot accept new prices of US and EU suppliers, remains firm, CIS scrap collectors will have an opportunity to deal at the desired price levels. <br> (Source: <a href="http://www.metalexpert-group.com/"><u><font color="#800080" size="3" face="Times New Roman">www.metalexpert-group.com</font></u></a> )</span>