<span>Russian and Ukrainian exporters have seen another increase in scrap prices abroad. A growth in domestic buying activity in the key exporting countries has enabled suppliers to quote higher offers to overseas consumers. So, scrap quotations in Turkey (a key outlet for sale of the CIS material) have grown by $40-45/t. <br> Following EU and US exporters, CIS scrap collectors have been revising their prices upwards every week. <br> But increased transportation cost has brought some disadvantages to the situation. Scrap collectors have intensified trading, thus stirring up activity in the freight segment which had been down due to a ban on grain exports. Seeing scrap prices go up, transport companies have lifted their quotations too. <br> In particular, scrap shipments from Rostov-on-Don to the ports of the Marmara Sea will be charged at $28-29/t in late December, up $9/t m-o-m. Thus, the latest deals of Russian exporters have been made at $440-445/t C&F Turkey, which means $411-416/t FOB excl. freight cost. Traders say adverse weather conditions in winter will make transportation rates increase to $32-33/t. <br> Although the rise in export offers has been partly wiped out by higher freight rates, the weekly gain in Russian scrap in Turkey has been $15-20/t, which is quite successful taking into account higher purchase prices (+$10/t). <br> Local mills have been relatively passive, having realized in the current market situation exporters have better chances to increase purchases prices, and seized buying. Quotations of A3 scrap have gone up by only $10/t at ports. <br> Currently the material is being purchased at $305-310/t CPT, against $295-300/t CPT a week earlier. <br> Ukrainian scrap collectors have faced increased transportation cost too. Shipment of scrap by the Volgo-Balt vessels from Ukrainian ports to Marmara Sea will cost $30-33/t, to distant ports (Iskanderun) the price has grown to $45-50/t, up 25-40% m-o-m. At the same time, Ukrainian scrap is cheaper than Russian material in the export market –A3 is priced at $420-430/t C&F Turkey, depending of destination port, which means $390-395/t FOB. <br> Besides, a law abolishing VAT on ferrous scrap trade will gain force on January 1, 2011 and many suppliers, aware of problems with its rebate, prefer making deals with the local mills, postponing export sales. This has resulted in purchase prices growing at slow pace – offers of A3 at Ukrainian ports have added only $5/t compared to early-December levels. Thus, most exporters bid $306-317/t CPT for A3 to their suppliers. <br> Russian sellers from ports of St. Petersburg, who have been servicing contracts concluded previously, are getting ready to close sales of January material. Taking into account the latest deals with exporters from the US and the EU, Russian scrap collectors expect to close sales at $455-460/t C&F, which means $400-405/t FOB excluding January freight rates. <br> The need to ship the material under previously concluded contracts amid a drop in scrap collection, has driven up buying prices of exporters from St. Petersburg. Minimal bids for A3 scrap at ports are $305/t CPT. However, not many offers are coming at this level, so some companies that urgently need to load up the vessels, are setting buying prices at up to $325/t CPT. <br> Many companies, wary of a downturn in demand from Turkish mills next month resulting in a decrease in scrap prices, are trying hard to sell as much material as possible. Besides, there is plenty of offers coming from the CIS, which will restrain quotations until 2011. <br> (Source: <a href="http://www.metalexpert-group.com/" target="_blank"><span><font size="3" face="Times New Roman">www.metalexpert-group.com</font></span></a> )</span>