Rebar retains positive momentum

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.

The pause for the May holidays did not change anything on the Russian market of steel products. As before, rebar still holds the strongest positions on it. Many experts report an increase in sales in the middle of May and note a rather high demand. At the same time, hot-rolled steel remains an outsider. In this commodity group, the highest values of the cost subindex are stable.

In absolute terms, metal trading companies point to a 15-20% drop in sales compared to last year's figures. However, the volume of supply is also limited, no one resorts to dumping, so prices for steel products are rising. Even for hot-rolled steel, which has been stagnating lately, an increase is forecasted for the end of the current month.

The value of the index “MSS-TM. Results” index for the last working week from May 12 to 16 decreased compared to the pre-holiday week from April 21 to 25, but only by 0.08 p.p., to 52.90 points. Since mid-March, it has been above the 50-point mark that separates the observed rise from the decline.

Expectations, as at the end of April, are at about the same level as the outcome. The value of the corresponding index for the current working week from May 19 to May 23 added 0.29 p.p. compared to the previous reporting period and amounted to 53.06 points.

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 A500C rebar (12-16 mm), 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”

Subscription to news