Prices to keep going down in October

摘要

By mid-September, the average market price for A3 scrap fell by 7% in the European part of Russia and by 5% in Ural.Steel scrap quotes in Russia will largely depend on the finished and semi-finished steel market environment. Domestic rebar prices will keep decreasing in October-November, losing RUB 2,000/t and RUB 500/t respectively amid growing oversupply and seasonally weaker demand. In the circumstances, steelmakers will seek to partially offset a drop in their margins by cutting production cost. In December, longs producers will attempt to push their prices up by RUB 1,000/t on average. If suc? cessful, the consumers who face raw material shortage will be able to simultaneously raise steel scrap bids.