Russian longs market to pick up in early March

Market experts expect the Russian domestic longs market to start growing again in early March of 2007, upon the beginning of the new construction season. In the Russian domestic market in 2006, the boom in the construction sector was responsible for the price rise at the end of the summer in long products, especially as regards rebar of 10mm and 12 mm. According to the preliminary data, domestic rebar prices increased by about 50 percent in 2006. Although the late December 2006 rebar prices corresponded to the levels of June, due to their sharp decrease starting from early November, rebar prices are expected to pick up in late February-early March 2007 in line with the beginning of the new construction season in the country. Yet, the price rise is not expected to be as sharp as we experienced at the end of summer.