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ESCALATING RAW MATERIAL COSTS
UNSETTLE PRICE SENTIMENT IN MOST DEVELOPING MARKETS
Brazilian steelmakers continue to operate in a difficult
business climate. Pricing positions were influenced by the strength of the
country’s currency and rising raw material costs. Higher interest rates have
begun to undermine procurement activity. The mills are closely monitoring steel
imports. For some product forms, distributor inventories are in excess of four
month’s consumption.
The Mexican steel industry remains bullish over the outlook for the third
quarter of 2011. Underlying demand is expected to be driven by strong shipments
to the automotive and construction sectors.
Russian producers issued higher quotation for July’s rolling campaign, following
rising production costs and minimal price competition from CIS suppliers. Buying
volumes were lower than market projections.
The general outlook for the Ukrainian steel industry remains positive. Local
producers are operating at an average utilisation rate of 85 percent. Shipments
to the domestic market fell in July. This has been attributed to stronger export
demand, scheduled maintenance work and raw material shortages.
Indian producers are faced with a dilemma of whether to ride out the monsoons or
downgrade planned production targets. Another problem is raw material shortages.
Several steel facilities face closure after running out of high grade iron ore.
Litigation has stopped Karnataka from lifting its ban on exporting iron ore.
Distributors are bearish over the strengthening of steel demand in the period to
late September.
Price volatility returned to the Turkish steel market in July. Low steel buying
followed the country’s parliamentary elections. However, Long product
steelmakers issued higher selling figures following delayed purchases of steel
for construction and rising billet costs. Distributors are divided over the
sustainability of current transaction values. Several firms plan to retain
minimum inventory in the period to early September.
Demand for construction steel in the United Arab Emirates has stagnated. Local
trading houses remain bearish and plan to carry leaner inventories over the
Ramadan period. Domestic steel facilities are now looking to export some of
their July/August rolled steel output, due to slow domestic sales and continued
pressure from low-cost foreign supply.
Source: MEPS -
Developing Markets
Steel Review
Also see -BRIC
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Indian
Steel Prices Online and
CIS Steel
Prices Online
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