Overheated local rebar market in Russia makes mills refrain from exports

Friday, 05 November 2021 17:47:57 (GMT+3)   |   Istanbul

Over the past couple of weeks, the situation in the local rebar market in Russia has been gradually heating up, amid decent demand and the need to replenish stocks. However, since late October the prices increased so much that some sources describe them as being at “ridiculous levels”. Although the downturn is expected to be seen for December and January production, for now high local rebar prices make export negotiations entirely non-attractive for producers.

Currently, rebar prices in Russia are concentrated in the range of $925-960/mt ( RUB 80,000-83,000/mt) ex-works CPT, up by around $75-90/mt (RUB 7,000-8,000/mt) since late October. “Clearly, the prices are way too high for today and there will be a harsh fall,” a source told SteelOrbis. “Traders are speculating and the market is crazy, but for now there is no point in offering for export,” he added.

Given the situation in the local market, Russian mills are not offering for export. However, the situation may change soon as in a couple of weeks domestic rebar prices in Russia are expected to drop to reasonable levels, which means around a $150/mt downturn at least. In addition, Russia expects export duty to be levied from the beginning of 2022, and so January shipments will not be subject to $115/mt export tax. For now, the indicative export offers from the CIS are at $730-750/mt FOB for rebar at around $830/mt FOB for wire rod, SteelOrbis has learned.

Tags: Rebar Longs Russia CIS 

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