Russian domestic price of rolled metal is going to jump

The growth in the world prices and the ruble has led to the fact that metallurgical companies are going to increase the rolled metal price by 10-20% in May to achieve the export parity. According to the Kommersant’s information, the problem automotive industry will be touched by this at minimal level, but this may be much more sensitive to pipe manufacturers. However, most of the major consumers work on long-term contracts with price formula, and the prices increase on them should be lower.

In May, Russian metallurgists can raise the price of hot-rolled steel (HRC) by 20% month-to-month, BCS reported on Friday, cited data from Metal Expert. Analysts note that this could be the biggest monthly price jump since April 2008. The dynamics seems likely: the domestic prices for HRC in the Russian Federation follow the export ones with about a two-month lag, BCS writes. Last week, a ton of HRC in Russia cost about $350, while the export FOB Black Sea - $400.