DEVELOPING MARKETS HIGHLIGHTS – FROM
MEPS INTERNATIONAL LTD
Brazilian steelmakers have
begun to lower production targets in reaction to weak underlying demand, high
inventory levels and negative price sentiment. The Instituto Ašo Brasil (IABr)
has reported that finished steel sales in the home market during May totalled
1.49 million tonnes – down 1.3 percent, compared with the previous month’s
figure. Meanwhile, the Brazilian flat steel distributor association, INDA, has
indicated that imports of flat steel products totalled 175,757 tonnes – a fall
of 19.6 percent.
The outlook for the Russian steel market is unchanged. Domestic steelmakers have
delayed releasing their preliminary July basis quotations for both flat and long
finished steel products.
Ukrainian trading houses remain bearish about the prospects for domestic steel
consumption in the remainder of 2015. However, the local association of metal
producers, Metallurgprom, has forecast that crude steel production in July will
total 2.3 million tonnes – up 5.6 percent compared with May’s output figure.
Buying activity has slowed in Turkey. End-users have begun to press for lower
prices, in view of the downward movement being witnessed in other global steel
The trading environment has weakened in the United Arab Emirates. Stockists do
not expect to witness a recovery until after the Eid holidays, which mark the
end of the Ramadan festival. Local steel producers have also faced stiff price
competition from Chinese, Indian and CIS suppliers.
In South Africa, deliveries to downstream steel consuming industries have
slowed, amid negative price expectations and weak underlying demand growth. The
South African Iron & Steel Institute (SAISI) has stated that imports of finished
carbon and alloy steel products totalled 101,188 tonnes in April – down 28.7
Source: MEPS -
Steel Review - June Edition
Also See: MEPS
Indian Steel Prices Online
Free Sample copy
of Developing Markets' Steel Review