The steel product market is gradually cooling

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 Russian market of steel products as a whole remains in the growth zone, but it is gradually cooling down, the reason for which is obviously a decrease in investment and economic activity. Sales and demand indicators so far show a decline only in the hot-rolled steel sector, but overall growth rates are at their lowest level since the end of April.

For the first time since the beginning of March this year, experts reported a decrease in quotations for steel products in the average market. Negative trends are again observed, primarily for hot-rolled steel products, but the price increase for rebar and medium-sized profile pipes is also slowing down. At the same time, costs continue to increase.

The value of the index “MSS-TM. Results” index for the last working week from May 26 to May 30 decreased, however, only by 0.24 p.p. compared to the previous period to 51.56 points. Thus, it still exceeds the mark of 50 points, which separates the observed growth from the decline. But the decrease of this indicator occurs for three consecutive weeks.

Meanwhile, the expectations of the market participants have decreased to the level of early April. The value of the index “MSS-TM. Expectations” for the current working week from June 2 to June 6 decreased by 1.02 p.p. to 52.06 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 on a ten-point system for medium-sized rebar A500C (12-16 mm), hot-rolled sheet St3 with thickness of 4-10 mm, medium-sized profile pipes (60x40 - 80x80) on 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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