Rebar export offers from the CIS have increased by $10-20/mt over the past month to $440-450/mt FOB for October production. The key reason for the increase is the uptrend in the Turkish scrap market and higher rebar offers from Turkey. However, both ex-CIS and Turkish mills report that demand is lagging behind. Moreover, Russian mills for now find it more beneficial to sell their rebar locally, while the bids for exports are still at least $10-15/mt lower than offers, SteelOrbis understands.
Local prices in the northern region of Russia have increased by $5-10/mt (RUB 2,100-2,500/mt) over the past month and mills are mainly offering for September production at $417/mt (RUB 37,500/mt) CPT Moscow. In the southern region, Abinsk SW is in the market with $417/mt (RUB 37,500/mt) ex-work, while Novorossmetal is quoting $408/mt (RUB 36,700/mt) ex-works, both for September production. Local demand is said to be decent and domestic deal prices are considered by the mills to be marginal enough compared to the export deal prices, taking into account logistic costs.
In the wire rod segment, CIS-based mills are not eager to go below $470-480/mt FOB for October production, up by around $20-30/mt over the past month. The demand in the segment is somewhat better compared to the rebar segment, partly due to the fact that most offers from Turkey are above $500/mt FOB.
