According to the Russian Union of Metal and Steel Suppliers (RUMSS), the current price increase in Russian domestic steel product market is based on the effect of short-term factors such as the rise in oil prices, the influence of natural disasters, the rise of export quotations and inflation. RUMSS considers that there are no solid factors for increases in rolled steel prices, as domestic demand remains weak.
RUMSS also noted that the problem is exacerbated by the fact that this year there is a lull in private and individual construction activity, while in 2010 many metal
trading and metal processing companies had shifted their focus to meeting the needs of customers in this particular sector.
"Market participants are cautious about predicting the development of the situation in the future, although many believe that such a sharp increase may be replaced by an equally sharp decline in rolled steel product prices. It is also difficult to predict when this could happen," reads the RUMSS statement.