Mechel resumes sales of steel rebar on Moscow Stock Exchange
Russian steelmaker Mechel has resumed tendering rebar on the Moscow Stock Exchange this week, over a year after the steelmaker's last such sales on the exchange, a MSE official told Platts Friday.
On the first day of trading, 603 mt of rebar were sold, in eight transactions with a value of more than Rubles 12.8 million ($439,000), the source said.
The daily trades--which are being conducted by Mechel subsidiary Mechel Service--are reportedly aimed at physical buyers in the construction sector.
The steelmaker began selling rebar through the stock exchange in June 2007, and typically sold a few hundred mt of the material via this process every month until February 2009, when it interrupted the tenders because of the impact of the economic crisis on steel demand.
The MSE said that, since the start of rebar trading, more than 27,600 mt of product has been sold on the exchange for a total value of Rubles 467 million.
Mechel considers this electronic platform as an alternative channel to market its products, Russian publication Metal Supply and Sales Magazine reported Friday.
A Mechel executive was also quoted as describing these tenders as the "development of a new direction of sales," which would allow a broader audience of buyers to get steel products "at competitive market prices," and would provide transparency for the company's activity.
Since 2002, over 12 million mt of goods has been sold on the MSE's Commodity Market Section, with the number of deals exceeding 10,000.
Julien Hall
Platts Steel Markets Daily
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