Steel scrap gets expensive by rates a lot of sectors of economy could envy. Only in Q1 2010 the prices grew by 30% to 50% and by estimates of experts, growth of average price is expected by 8.5% in the next three years.
According to result of research of Creditinform information agency average purchase price for ferrous scrap to come back to the before crisis level and reach RUR 8600 per tonne.
Monthly shipments of ferrous scrap in local market dramatically fell because of crisis. However, experts assume growth of shipments by 35% by the end of 2010 compared to the previous year. Dynamics of shipments to consumers in 2011-2013 will remain at 11%.
Experts believe one of the important force for growth of shipments and recover of scrap collection is an appearance of a lot of small players in the market who collect scrap from the people and its further resale to the traders. However, both small and middle scrap collecting enterprises have face harder and harder competition from the large companies who have their branches merely in all regions of the country where scrap collection is high.
Large steelmaking companies work with reputable companies as MAIR (assessed 20% of the market), Tulachermet (assessed 15% of the market), Alfa-Metall (assessed 8% of the market), Vtorchermet, Petromax, Pskovvtormet in North-West region.