In 2010, Russia's consumption of long steel products is expected to increase by 10-15 percent compared to 2009, Steel Industrial Company's commercial director Vladimir Krysanov said at the annual congress of the Russian Union of Metal and Steel Suppliers held in Yekaterinburg city.
Mr. Krysanov characterized the Russian domestic longs market as being threatened by falling prices against the background of the decline of billet quotations in foreign markets, by lack of buying activity, slow recovery of the construction industry, and by traders' switch to imports.
In the first five months of the current year, the apparent capacity of the Russian rebar market increased by 11 percent year on year, amounting to 1.8 million mt. Meanwhile, during the period in question, the import volume went up by 75 percent to 245,000-250,000 mt, while shipments of the domestic producers rose by four percent year on year to 1.5 million mt.
According to Mr. Krysanov, the main trends of the Russian domestic flats market can be characterized by the increase in demand for flat steel products, kick-started by the rise of state investment activity, the decrease of export prices, due to the lack of demand in key markets, and high production costs.
As regards the Russian domestic pipe markets, Steel Industrial Company does not expect a sizeable change in local prices, saying that there may be an increase in demand from certain consumers, a decrease in capacity utilization rates and a destocking of warehouses.