Promsort-Tula has opened acceptance of orders for November rebar. With delivery to Moscow, 12 mm rebar is offered at RUB 58,500/t ($604) (SRT, with VAT), which is RUB 500/t ($5) higher than the official prices for October volumes.
Information about possible increase of factory prices for November has been discussed on the market for a long time, but most companies still expected prolongation of October prices or their reduction. On the other hand, the producer is trying to support the secondary market, where rebar quotations have stabilized after a prolonged decline, and now traders need a stimulus to turn prices upwards. So far in Moscow, prices for 12 mm rebar are in the range of RUB 55,000-56,000/t ($568-578) with VAT, but this is not the bottom.
Among other things, there is still high competition with trading houses and, in particular, with TD Tula-Stal. Traders do not see any prospects to open purchases at the price offered by Tula, but they treat the November price only as an indicator of dynamics, even if the proposed level can be argued by the efficiency of exports, due to the devaluation of the ruble, higher prices for steel scrap (which is unlikely) or high financial burden on the holding in the conditions of the key rate growth.
$1 = RUB 96,83
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