Rebar is in a good demand before the May holidays

The analytical service of “Metal Supply & Sales” Magazine continues publishing the "MSS-TM index" (Market Temperature). The value of this index is determined through expert surveys on a weekly basis.

At the end of April, according to experts' reports, rebar became a highly demanded type of steel products. Most of them pointed to increased sales before the holiday break and decent consumer demand. The situation in the medium-sized profile pipe sector was also generally favorable, while hot-rolled steel was still lagging behind.

The festive period will certainly temporarily reduce activity in the market. Sales are expected to be very moderate. Warehouse inventories should stabilize. At the same time, price increases may continue after the holidays, with strong positive expectations also appearing in the hot-rolled sector for the first time in months.

The value of “MSS-TM index. Results” for the last working week from April 21 to April 25 increased by 2.64 p.p. in comparison with the previous period and reached 52.98 points, which became a new maximum level since June last year. Since mid-March, it has been above the 50-point mark, which separates the observed growth from the decline.

At the same time, the value of the “MSS-TM index Expectations” for the current shortened workweek from April 28 to actually April 30 fell 1.16 p.p. to 52.77 points. This was the biggest drop since mid-November, but the index nevertheless remained in the growth zone. Besides, before the holidays such a decline looks quite natural.

Recall that the participants of the expert survey are asked to assess the results of the past week and expectations for the next week for medium-sized (12-16 mm) A500C rebar, hot-rolled sheet St3 with thickness of 4-10 mm, medium-sized profile pipes (60x40 - 80x80) according to the following parameters:

“Sales” (in monetary terms)
"Demand” (consumer, expressed in physical terms - by tonnage, number of requests)
“Warehouse stocks”
“Purchases” (by tonnage - rolled products from manufacturers for distributors)
“Costs” (for energy, labor, taxes, raw materials and other factors affecting the cost of production)
“Prices”

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