CIS-based longs producers are almost inactive in exports, specifically in the rebar segment. One of the reasons for this is that the mills, mainly those in Russia, are focusing on local sales, which are quite lively. Another reason is that international demand for the product is generally slack.
Rare rebar export offers from Russia are coming at $460/mt FOB as the official level. Some sources, however, report $445/mt FOB is quite realistic to get since the CIS-based mills have to compete with Turkey’s offers. Foreign buyers are mainly quiet, trying to estimate the possible workable market price and the developments in the scrap and billet segments, SteelOrbis understands. In the wire rod segment, the official offers from Russia are at $515-520/mt FOB, though the workable level is estimated at closer to $500/mt FOB.
The local rebar market in Russia remains lively as construction activity is high, producers report. In the south, rebar prices have increased by $15-20/mt (RUB 2,300-2,800/mt) since early September to $423-428/mt (RUB 39,000-39,500/mt) ex-works. In the northern part of Russia, most mills have announced $417/mt (RUB 40,000/mt) CPT Moscow, up by $17/mt (RUB 2,500/mt) over the past month. All local prices are given for 12 mm rebar for October production.
Local prices in RUB include 20 percent VAT, while prices in US dollars do not.
$1 = RUB 76.88
