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Belarusian commodity exchange expects no significant price fluctuations for rolled steel in January
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MINSK, 4 January (BelTA) – Prices for rolled steel sold at the Belarusian Universal Commodity Exchange will most likely remain stable in January. No significant fluctuations are projected, reads the review into the exchange market of metal products prepared by BUCE analysts based on the Q4 2021 data, BelTA learned from BUCE’s press service.
"Currently, there are no prerequisites for new volatility on the market, and a repetition of last year's situation is unlikely. After a significant increase in prices in the first half of 2021, when some types of rolled products doubled in price, prices for metal plummeted by an average of 25-30% in Q3. However, the decline slowed down and there were no significant price fluctuations in Q4. Depending on the type of products on the stock exchange, prices fluctuated within +/- 10%. Approximately the same dynamics is expected in January of this year, since the market has stabilized and there is no obvious imbalance of supply and demand now," BUCE analysts said.
BUCE analysts also noted that since about 70% of ferrous metals sold at BUCE are of Russian origin, prices on the Belarusian exchange market fully reflect the price situation in Russia. So, in Q4 2021, amid the oversupply from Russian metal producers, the demand for rolled metal decreased markedly. First of all, this affected the segment of flat products and steel pipes, as the surplus and increased competition between suppliers drove prices down. Prices for fittings and channel stock increased slightly in October-November 2021 under the influence of seasonal factors and unfavorable foreign economic conditions and then declined in December. At the same time, the key factors that impede the further fall in prices for metal products have remained in place, namely the increase in tariffs for container transportation and the rise in energy prices. Therefore, according to BUCE experts, certain pressure on the market will continue.
"In the short term, the price dynamics for ferrous metals in the Belarusian market will continue to correspond to the trends in the Russian domestic market where there is an excess of supply due to reduced export. However, steel producers will, most likely, seek to ensure full capacity utilization, so they might continue the softer pricing policy," the review says.
The public joint-stock company (OAO) Belarusian Universal Commodity Exchange was established in 2004. The first trade sessions took place in June 2005. BUCE is one of the largest mercantile exchanges in Eastern Europe. Its key function is to assist Belarusian companies with exporting their products and assist foreign companies with entering the Belarusian market. The commodity exchange facilitates trade in metals, timber, agricultural products, and a broad choice of industrial and consumer goods.
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