Russian steel prices in March up by 2 pct –05 Apr 10

It is reported that in four weeks from March 01st to March 28th the total index of average weekly ruble prices for rolled steel grew by 2.4%. The index for section steel grew by 1.6%. For particular kinds of section steel the prices increased as follows:

Rebar - 0.6%
Beam and channel - 1.3%
Angle - 2.4%
Round bar - 2.8%

The index of average weekly market prices for flat steel grew by 3.3%. For particular kinds of flat steel the prices increased as follows:

HR sheet - 4.7%
HR plate - 3.9%
CR flat steel - 1.1%
Galvanized steel - 3.2%

Average EXW prices grew in March by 3.3 % as compared with February. EXW prices for section steel grew averagely by 3.5%. The prices for round and square bar grew by 3.7%, angle by 2.1%, beam and channel by 3.2%, rebar by 4.1%. EXW prices of HR flat steel grew by 4.1% averagely, HC flat steel by 3.4%, and galvanized steel by 0.9%.

According to SteelWeek by March 26, 2010 the total index of steel products world prices grew by 7.4 % in a month. Flat steel price increased by 9.1% and long products prices by 4.7%. In European market the prices grew by 13.5%. In Asian market the prices grew by 6.7%. The prices in North America markets grew by 4%.

In March the prices for all kinds of products in almost all regions increased. The analysts believe that it was caused by several factors at once, the increase of iron ore raw materials, coal and scrap prices the stockpiles work out, and some rally in steel consuming sectors. However, the fears that the events of 2008 will repeat are premature.

The main and natural reason for the prices increase which is the stable increase of the prices in consuming industries is the weakest today. Besides, not less than one fourth of all steel making capacities are functioning today. The most probable forecast for the future is that the demand from the end users will not change significantly, the stocks will be filled and rolled steel prices will grow, covering raw materials prices increase and will remain or start decreasing in late spring or in mid-summer.

Russian domestic prices are still growing not as fast, but the growth rate is increasing. They have the growth potential. Global prices in March are up 10% to 20% on 2009, Russian domestic prices in March are down 3% to 10% below 2009 yet. However, there are no significant reasons for the prices growth such as the demand increase in domestic market. But we still should expect that domestic prices will follow the global trend and will grow.

Our forecast said that if the trend of recent weeks does not change, that in April rebar price will grow by 3-4% comparing to March. The prices for other kinds of steel products will increase by 1% to 3%; the prices for HR and CR steel will increase by 2% to 3%.

Apr 5, 2010 08:54
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