<span>In the last week of 2010, Russian and Ukrainian ferrous scrap exporters succeeded in driving prices to their peaks, but in early January they have raised their quotations even further. However, the deals at extremely high levels are still scarce and only some suppliers manage to sell the January material. Market participants say buying activity is slack in the main sales destination – the CIS – due to holiday period being longer in the CIS than in USA and Europe. However, a number of companies in need of purchasing additional volumes have to accept suppliers'' new prices. Besides, traders are also interested in buying CIS scrap, expecting further growth of its prices next month. <br> For instance, exporters from Rostov-on-Don reportedly closed two deals at $465/t C&F Turkey and $470/t C&F Turkey, respectively, in late December. The difference in prices is attributed to higher freight rates included in the latter contract. Under the first agreement, shipments are made to a Marmara Sea port ($31/t from Rostov-on-Don), while in the second case the destination is the port of Nemrut ($36/t from Rostov-on-Don). Russian A3 scrap is offered for exports at $435/t FOB Azov-Black Sea ports, excluding delivery cost, $7/t up from late December. <br> In early January, the suppliers, having reduced their holiday absence to minimum, say they can sell their A3 at as high as $480-485/t C&F ($450/t FOB). <br> At the same time, exporters have had to lift purchase prices at ports to keep scrap arrivals steady amid strong competition with local mills and between each other. <br> For example, quotations of A3 scrap have reached $320-330/t CPT in Rostov-on-Don by early January against $317-319/t CPT last week. <br> Prices for Ukrainian scrap have also grown slightly. In particular, while in late December transaction prices for Ukrainian A3 were at $450/t C&F Turkey, lately some suppliers have succeeded in selling it at $455/t C&F. Prices for January offers of the material have reached $475-480/t C&F ($445/t FOB). <br> At the same time, the scrap collectors have left their purchase prices almost unchanged. Quotations of A3 scrap are currently at about $330/t CPT at most ports, only in certain cases reaching $338/t CPT, $5-13/t up from late December. <br> Situation at the Baltic Sea ports is different. The need to fulfill December contracts and eagerness to attract enough scrap to sell in January amid declining scrap collection, have forced exporters from St. Petersburg to raise their purchase prices by another $5-10/t, to $325-330/t CPT. <br> Only a number of companies succeeded in selling January material by the end of 2010, while most suppliers are currently negotiating the sales or collecting the required volumes. <br> Metal Expert estimates, scrap collectors of St. Petersburg will negotiate selling their January volumes at $480-490/t C&F ($435-440/t FOB excl. January freight rates), considering the latest transaction prices of US and EU exporters, who have raised their quotations to $480-490/t C&F in late December. (Source: <a href="http://www.metalexpert-group.com/"> <span><u><font size="3" face="Times New Roman">www.metalexpert-group.com</font></u></span></a> )</span>