STEEL PRICES CONTINUE TO SHADOW RAW
MATERIALS COSTS IN THE BRIC COUNTRIES
The average increase of
BRIC nation steel prices, published by MEPS (International) Ltd, was 4.2
percent in February. The main driver for this was the large hikes witnessed in
Brazilian producers are expected to begin raising effective prices of finished
steel products in March and April. This will be in the form of lower discounts.
Distributor trade remains weak. Several steelworks are operating at reduced
capacities to conserve raw material stocks. Rising import values are deterring
end-users from placing bookings.
In Russia, the upward trend in selling
figures is expected to continue next month. Local steelmakers remain committed
to aligning domestic flat product offers with export quotations. Indian steel
product quotations rose sharply in February. Increases in domestic selling
values have been attributed to successive hikes in raw material costs.
Chinese steelmakers released higher quotations
for all steel products after the Lunar New Year festival ended. The new figures
reflect increased input costs and the expectation of re-stocking activity by the
distribution network. However, dealer prices for some flat products started to
decrease in mid-month as market confidence waned.
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