In January 2023, the trends of the previous month continued in the Russian flat product market. In addition, the average bids for hot-rolled steel in the price lists of Moscow metal traders were added step by step, reaching their highest level since June last year. According to the data, this process will continue in the coming weeks.
The main driver of this increase is steel mills, which are preparing for an increase in the cost of sheet metal production in February. However, it is noteworthy that, firstly, this growth is quite moderately explained, especially in the hot rolled steel sector, and secondly, it is due to the increasing costs of producers since the beginning of the year. Due to the seemingly relatively high demand at the moment, no revival is expected in the domestic market.
Pipe workers are still in a difficult situation. The consumption of these products remains relatively low, as many companies are under their weight due to excess inventory, which is difficult to fit into one place. Some suppliers have started to lower prices again. But at the same time, industry participants understand that this path is not going anywhere, as the roll will definitely increase in February, and the general trend in the Russian steel products market is to the upside.
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