In the local market in Russia, rebar prices have decreased over the past week by $43/mt (RUB 3,000/mt) in the southern region and by almost $100/mt (RUB 8,000/mt) in the central region. As a result, the offers for September production in both regions have settled at $695/mt (RUB 62,000/mt) ex-works for now. “There is nothing dramatic here, though the price drops seem heavy. Demand is normal, but selling rebar here is much more efficient that exporting billet with duty. Accordingly, competition has tightened in the local rebar market,” a producer told SteelOrbis.
In the meantime, Russian mills continue to ignore rebar exports, as the $115/mt duty makes their possible sales prices neither profitable nor competitive. Turkey is in the market to sell at $680/mt FOB and above, which is lower than the local rebar price in Russia even after the decline.
In the wire rod segment, Russia has decreased its export price by around $10-15/mt over the past week to $780/mt FOB and slightly above. It is worth mentioning that ex-Ukraine offers for wire rod are at $790-795/mt FOB and for rebar at around $700-715/mt FOB, SteelOrbis has learned.
