Prices to reverse their course in October

摘要

By September 20, average market prices for A3 scrap in the European part of Russia and the Ural Federal District had increased by 6% m-o-m and 10% m-o-m respectively. Given healthy demand for rebar and its limited supply due to repairs at Tula-Steel, Kamsky Metallurgical Works TEMPO and Tyumen Electrosteel, as well as relatively high export prices for semis, Metal Expert expects quotes to increase further in October (by?RUB 1,000/t on average). Domestic longs prices are likely to reverse their course in Russia in November amid a seasonal drop in demand and excessive supply. As a result, steelmakers will keep raising scrap bids in October if it is in short supply, though the trend reversal in the steel market may result in similar changes in the scrap segment.