Rebar producers in Russia have increased their local prices significantly over the past week, following the improving demand as a result of better weather conditions and the somewhat livelier construction activity.
Mills in the central region of Russia have raised their offers for May production by $15-26/mt (RUB 2,000-3,000/mt) to $652/mt (RUB 60,000/mt) CPT Moscow. The producers located in the southern region have increased prices for production in the same month by $58-69/mt (RUB 6,000-7,000/mt) to $684/mt (RUB 63,000/mt) ex-works. Although the level is considered overpriced, it is still much profitable than the workable export price levels for the Russian mills since in the Black Sea region they are forced to compete with Turkish offers at $640-660/mt FOB.
As a result, southern region-based Russian longs producers prefer not to offer to export destinations these days. Moreover, they are reluctant to fight for the quota in the EU, leaving it to the mills supplying from the Baltic Sea ports at current offers standing at $670-680/mt FOB, SteelOrbis has learned.
Local prices in RUB include 20 percent VAT, while prices in US dollars do not.
$1 = RUB 76.7