Feb. 15 (Bloomberg) -- Russian exports of ferrous scrap, which is used to make steel, rose 5.2 percent to 5.9 million metric tons last year from a year earlier as average contract prices jumped and Turkey increased purchases.
The average contract price climbed 22 percent to about $336.70 a ton from $276.75 a year earlier, the Economy Ministry said on its website.
“Exports rose also because Turkey, which traditionally bought ferrous scrap from the U.S., purchased more from Russia last year after U.S. domestic use of scrap metals increased,” Dmitry Kolomytsyn, an analyst at Morgan Stanley in Moscow, said by phone today.
Turkey accounted for about 39 percent of Russian scrap exports last year, buying 2.28 million tons compared with about 1.86 million tons a year earlier, the ministry said.
Russia has about 5 percent to 6 percent of cross-border ferrous scrap trading volumes, which are estimated at 100 million to 110 million tons, Kolomytsyn said. The country’s sales abroad may have reached almost $2 billion last year from about $1.6 billion a year earlier, according to the data.
The biggest consumers following Turkey were Belarus with 1.5 million tons, South Korea with 884,800 tons and Spain with 411,500 tons, the ministry said.
--Editors: Torrey Clark, Alex Devine
To contact the reporter on this story: Marina Sysoyeva in Moscow at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Carpenter at email@example.com