Domestic Russian rebar down to $600-650 per tn in October

Russian rebar producers have sold October production material at $600-650 per tn ex-works as poor demand in world markets forces prices down.
Domestic Russian rebar prices have halved from highs of $1,150-1,200 per tn ex-works, August production, according to MB’s pricing archive.

“There are delays in some major construction projects in Moscow and St Petersburg because of the financial crisis,” said one Russian stockholder source. “Markets for products such as wire rod and rebar are very volatile.”

Severstal and Evraz sold rebar at $600-650 per tn ex-works, October production.

But one source at a major stockholder said the lower prices do not indicate a slowdown in demand in Russia.

“We saw a slight reduction in sales for September, but the Russian government has accumulated large financial resources and will show that there is no obstacle that will prevent projects being realised. It’s important that the state is the biggest client in the Russian economy,” the stockholder said.