The situation on the metal market in recent months resembles war reports. Manufacturers underestimated demand, and the resulting decline in investment in the industry led to a shortage and unprecedented growth in raw materials: from the 4th quarter of 2020, a sharp rise in prices for metals and metal products began around the world. Steel rebar, iron ore and scrap of ferrous metals – more than 1.5 times, rolled steel – more than 2 times, etc. The Eurasian Economic Commission is preparing to impose restrictions on the export of scrap outside the EAEU countries, and the Chinese authorities are threatened with recall licenses urge the largest producers and traders to reduce inventories of raw materials and abandon bullish futures rates.
The Russian authorities are equally concerned about the rise in metal prices. In May alone, according to Rosstat, prices in manufacturing industries in metallurgy in Russia increased by 19–32.7%. Due to the rise in metal prices, products of all “metal-intensive” industries are becoming more expensive. In May, inflation reached 6.02% year-on-year, and the Bank of Russia raised its key rate by 0.5 pp to 5.5%.
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