STEEL PRICES IN DEVELOPING MARKETS SUFFER CONTAGION FROM INDUSTRIALISED NATIONS

The Turkish steel market has now entered an uncertain trading period. Buyer expectations and successive price revisions by sellers are destabilising market fundamentals. As a result, neither party is certain when purchasing activity will normalise. Trading conditions in the UAE remain difficult. Dubai-based dealers are still trying to lower their inventories to manageable levels. Until this is achieved they will not be acquiring new material.

The hopes that the CIS mills had for a rebound in trading activity by the beginning of spring have fallen short. Substantial discounts have failed to rejuvenate buyer interest. End-users in Russia and Ukraine are still deferring new purchases. In general, the tight restrictions on credit and bank loans have undermined local demand.

Purchasing activity in the South African market remains weak. Sellers of long products continue to be kept busy by state-funded developments. New private sector construction investment is now rare. Difficult trading conditions persist in the flat products segment.

The outlook for the Mexican steel market has not improved. End-user requirements are continuing to soften. Low expectations are placing downward pressure on transaction values. The Brazilian steel market is now exhibiting signs of frailty. Inventory levels held by stockists remain high owing to lacklustre demand.

In contrast, the Indian steel industry has seen some stabilisation this month. Volumes continue to be low but a few products have risen in price. Real demand has not been restored. A lot of this is down to the release of more information on the government’s stimulus measures.
 

Source: MEPS - Developing Markets Steel Review - click here for a free sample copy

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