It’s better to run badly than to sit well. Russian and global sheet products market: April 2–16

Russian metallurgical plants raised factory prices for hot-rolled sheet and coil in April, with plans to increase prices across the entire sheet products sector by 2,000–4,000 rubles per ton in May. Their key strength lies in limited supply volumes. In the second quarter, scheduled maintenance is planned at all major enterprises, including Kazakhstan’s Qarmet. Additionally, domestic producers are banking on export shipments.

In turn, metal trading companies and pipe mills are also forced to raise their quotations to keep pace with the primary market. However, their success in doing so has been inconsistent. Visible demand for sheet products and general-purpose welded pipes remains low. While there is no excess supply of hot-rolled sheet, the pipe market continues to suffer from a large surplus. Moreover, consumers show little willingness to pay higher prices.

The high ruble exchange rate has heightened Russian companies’ sensitivity to export prices. Yet raising dollar-denominated prices proves more challenging than adjusting ruble prices domestically. Despite the strong ruble and relatively low overseas prices, which make exports a questionable endeavor, metallurgical plants prioritize maintaining balance in the domestic market.

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