Improvising on the demand. The Russian sheet products and welded pipe market: March 19–26

The situation on Russian market of sheet products has remained largely unchanged. Visible demand on the spot market is relatively weak across all sectors, from hot-rolled to pre-painted products. Some metal trading companies have noted temporary revival of local activity, but overall, no significant progress has been observed or is expected. Seasonal growth this year is likely to be minimal.

In this context, the price increases for hot-rolled sheets and coils announced by metallurgical plants for April are met with skepticism from distributors. They argue that it is unlikely that the end consumers would accept higher prices. Welded pipes are gradually rising in price, but their average price level still lags significantly behind even March coil prices. The slow growth is attributed to weak visible consumption.

Meanwhile, metallurgical plants consider their actions justified. They have reduced supply volumes and aim to compensate for this with higher prices on the primary market. Producers have adjusted their output volumes to roughly align with real demand for sheet products and adjusting the supply through export shipments that are being carried on despite the strong ruble.

Full review text is available on commercial basis only.