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NEGATIVE PRESSURE ON STEEL PRICES IN
DEVELOPING NATIONS
The MEPS BRIC Countries' average transaction prices
decreased in January for all eight carbon steel product forms researched. The
downward movement varied between 1.4 percent for medium sections and 3.8 percent
for hot rolled coil.
Brazilian steelmakers are finding it difficult to fill order books. Underlying
consumption has fallen short of industry projections. This has fuelled
expectations of price stability in the January/March period. Market sentiment in
Mexico has been undermined by price volatility and economic uncertainty.
Distributors have found the latest transaction values unattractive.
Purchasing activity has stagnated in the Russian Federation. Domestic
steelmakers downgraded selling figures for several steel products. Ukrainian
steel consumption has been deflated by the country’s strict credit conditions.
Traders plan to postpone purchases until the domestic pricing scenario is more
transparent.
Indian distributors contend that the latest domestic price levels are not
supported by market and economic fundamentals. Steelmakers without captive iron
ore mining assets have welcomed the government's decision to impose 30 percent
duty on exports. The foreign trade has been blamed for stifling domestic
competition and lifting production costs.
Difficult trading conditions persist in Turkey. Market sentiment has been eroded
by the EU sovereign debt crisis and unfavourable weather conditions.
Construction activity is not expected to improve until weeks 8 and 9. End-users
intend to steer clear of large flat product purchases in the interim. Price
competition has intensified amongst steelmakers and distributors.
The outlook for the United Arab Emirates’ steel market is unchanged. Stockists
intend to persevere with conservative inventory levels, following low import
quotations and an uncertain global economic climate. Shipments to the
construction and infrastructure projects remain scarce.
Source: MEPS -
Developing Markets
Steel Review
Also see - BRIC
Steel Prices Online and
BRIC Steel
Price Index
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