Lagging hot-rolled products

The analytical service of “Metal Supply & Sales” Magazine continues its publication of the MCC-TP Index (Market Temperature Index). The index value is determined through weekly expert surveys.

Experts noted that in mid-March, sales of rebar and medium-sized profile pipes were at a decent level. However, while sales remain significantly below figures from a year ago, the overall trend is positive. The only sector showing no progress is hot-rolled steel, which continues to decline in price. Sales expectations for this category of steel products this week point to relative stability.

According to most experts, the price environment for rebar and pipes suggests modest growth, fueled by improving demand. Many market participants plan to increase purchases of these products from primary suppliers. Yet, hot-rolled products, again stands out negatively compared to other product groups.

The MCC-TP Index (Results) for the past workweek (March 17–21) declined by 1.49 percentage points to 50.61 points after five weeks of growth. However, it remains above the 50-point threshold, which separates growth from recession.

Meanwhile, expectations have improved for the fourth consecutive week. The value of corresponding sub-index for the current workweek (March 24–28) rose by 0.89 percentage points to 52.40 points, the highest level since early June of last year.

The expert survey asks participants to evaluate the following parameters on a 10-point scale for: medium-sized rebar A500C (12–16 mm), Hot-rolled sheet St3 (4–10 mm thickness), medium-sized profile pipes (60x40 – 80x80). Parameters assessed:

Sales (in monetary terms)

Demand (consumer demand, measured in physical terms: tonnage, number of inquiries)

Stock reserves

Purchases (tonnage purchased by distributors from producers)

- Costs (energy, labor, taxes, raw materials, and other cost factors)

- Prices