Such is life. The Russian and Global Market for long products: March 24–31

Prices for rebar on the Russian market rose slightly in late March, reaching their highest level since November of last year. Some steelmakers raised their April quotes for this product, while others kept them unchanged, but the upward trend in primary market prices is clear and will likely continue in the near future. As a result, traders have little choice, especially since spot prices in most regions lag behind factory prices.

Although the construction industry remains broadly unfavorable and unlikely to improve significantly soon, visible demand has picked up slightly. A seasonal spring uptick is evident, even if sales in absolute terms remain below last year’s levels. Prices will also continue to rise due to the significant increase in costs over recent months. This trend affects the entire economy, and the steel market is no exception.

Some companies are offloading surplus stock for export, but this is far from a magic pill. Consumption in Central Asia is limited, while in more distant foreign markets, the relatively high ruble exchange rate (amid low dollar-denominated prices) must be factored in.