Hot-rolled steel became the coldest rolled product

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.

Russian steel companies raised prices for hot-rolled plate and coil in May, and planned to raise quotations for these types of steel products again in June. But the market environment, according to experts' feedback, does not favor this.

According to their estimates, sales and consumer demand for hot-rolled plate have been slowly declining recently, and there are no prospects for improvement. Prices for these products are relatively stable and do not show any upward trends either. The only thing that is steadily rising in this sector is costs.

At the same time, the conjuncture in the rebar sector remains more favorable. Most experts note an increase in sales with expanding demand. In their opinion, rebar is able to increase in price. A similar situation is observed in the medium-sized profile pipes sector.

Thus, the market as a whole remains in the positive zone. Though the value of index “MSS-TR. Results” index for the last working week from May 19 through May 23 decreased in comparison with the previous period by 1.10 p.p., to 51.80 points, it still exceeds the mark of 50 points, which separates the observed growth from decrease.

Short-term forecasts have been relatively stable lately. The value of the index “MSS-TR. Expectations” index for the current working week from May 26 to May 30 increased by 0.02 p.p. compared to the previous period to 53.08 points. At least, the experts mostly continue to hope for the best.

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

“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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