Kazakhstan: In August, the main manufacturers mainly retain the prices for reinforcement

In August, the prices of manufacturers have not changed for the supply of reinforcement to the reinforcement to the market of Kazakhstan. Thus, the main factors that impede the rise in price of the rental are the presence of the free capacities of Kazakhstani manufacturers and a high level of competition in the primary market. At the same time, prices are restrained from a decrease in seasonally high demand for rental construction and an increase in FOB-coting.

So “Evrazholding” announced the prolongation of the July price list, thereby forming the minimum price level for imported rental in August. It should be noted that MMK and Uzemetkubinat also announced the preservation of prices for August reinforcement. At the same time, the Magnitogorsk rental is still offered at $ 22-33/t more expensive than competitors, while the prices for Uzbek reinforcement for $ 31-33/t are higher than the market offers of competitors and form the maximum level of imported rental prices.

Internal manufacturers have decided not to revise price list, preferring to increase volumetric sales indicators. In particular, thanks to the conservation of prices last month, the AMT significantly increased the loading of capacities, a similar tactic was used in August. At the same time, the prices for scarce positions rose - the August reinforcement of 10 mm rose by $ 15/t, the rental amount of the GS brand increased to $ 13/t. The company Ferrum-VTOR extended the actions of the July price list, while on the condition of SRT in August the reinforcement may become cheaper due to a decrease in the railway tariff for delivery (this is due to the decision to change the carrier). On the Kasting MH, July prices retained, and the products of the enterprise on the condition of the Almaty SRT are offered up to 7% cheaper than the rental of competitors. Despite this, a portfolio of orders for August has not yet been formed, and production is not yet planned. In the Almaty market, the products of the Aktau LZ appeared.

The current volumes of reinforcement sales in the warehouse market exceed the indicators of the previous month, including due to an increase in the share of state financing. Sustainable demand is observed for all sizes, the deficiency of Russian small -grade reinforcement is partially leveled by the presence of Kazakhstani analogues in the market, in general, the market is quite balanced. The merchants do not see prerequisites for changing prices in the future month. So, the demand for construction is highly high, while the price increase will be restrained by an excess of Kazakhstan rental and an approaching off -season.