Minus thirty degrees in the Russian market of long products: 10th-17th of March

Meteorologists are predicting a rise in temperature but the market of rolled metal products for building purpose, quite opposite, is frozen. Some metal trading companies forecasting a decrease of demand for the rebar decrease of an apparent demand on 30 percents, compared to last year’s figures. Players on the market inform that the sales on January-February period were better than they were in March. At the same time, strangely enough, the spring revival is present, deals are done, just rarely than usual.

Metallurgical companies in March raised prices for the fits. Now distributors are facing this task. Judging by the feedback, the task is being solved with a variable success. Some of suppliers see some growth on the spot market, while the others are vice versa, are forced to turn back in order to support the sales. It is likely that in the second half of the month the last tendency will prevail.

A relative market equilibrium is being supported by restrictive policy of leading metallurgical companies. By reducing production of steel and rolled products, they promote avoidance of an oversupply. Although the new rising cost in April becomes suspicious. Even the minor decrease in manufacturer's price should not be excluded, although metallurgists will trying not to let the decrease. Nevertheless the scrap metal is quite cheap so the factories may afford a moderate pricing policy.