In the first week after the New Year holiday, CIS-based long steel producers have barely been present with offers in the export markets, while export activity has generally been quiet. Some offers for wire rod have been reported at $730/mt FOB for March shipments, more or less in line with the pre-holiday levels. In the rebar segment, no firm offers from the CIS have been heard this week, but the indicative level is estimated at around $620-630/mt FOB. “The quota for ex-Russia rebar in the EU is exhausted, taking into account the most recent sales. We think that the price increase will continue,” a producer told SteelOrbis.
In the local market in Russia, demand has been slow but is expected to revive by the middle of January. The possible imposition by Russia of export restrictions on rebar and billet are among the factors that are being evaluated by market players at present. In both the southern and central regions of Russia the official offers for rebar are still at RUB 58,000/mt ex-works/CPT, but have decreased by $9-10/mt on US dollar basis over the past two weeks to $648/mt ex-works/CPT due to currency fluctuations. However, sources report that the workable levels are $34/mt (RUB 3,000/mt) lower than the official prices. “Most people, mills and banks, are off here until January 11. Next week, the market will be clearer,” a Russian producer told SteelOrbis.
Local prices in RUB include 20 percent VAT, prices in US dollars do not.
$1 = 74.55 RUB