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SEPTEMBER STEEL PRICES REMAIN UNDER
PRESSURE IN MANY DEVELOPING COUNTRIES
Russian transaction values for many steel products were
raised in September. Price competition from CIS suppliers was minimal. Local
steelmakers are expected to revise their planned production targets if trade
remains subdued. Ukrainian steelmakers are forecasting stable demand from the
construction sector in the September/November period. Shipments to domestic
industrial firms remain modest. For now, local producers intend to operate at
high utilisation rates to meet the requirements of their overseas customers.
Purchasing activity has stagnated in the Turkish steel market. Negative price
expectations gained momentum in week 37. Buyers have adopted “wait and see”
procurement strategies. Distributors are now less willing to hold or build
inventory. Exporters are faring no better. They are struggling to sell material
to foreign markets.
Difficult trading conditions persist in the United Arab Emirates. Demand has not
recovered despite the end of Ramadan. Local trading houses are in no hurry to
replenish their stocks. They are uncertain about whether industrial activity and
construction work will improve in October.
Uncertainty continues to undermine market sentiment in India. Steelmakers are
operating at less than 80 percent production capacity to conserve raw material
inventory. The Supreme Court’s ruling on iron ore mining activities in Karnataka
has had no immediate impact on finished steel transaction values. NMDC has begun
to auction 1.5 million tonnes of iron ore stock to alleviate pressures.
In Brazil, distributor inventory levels have remained close to four months of
consumption. Buying volumes were lower than market projections. In Mexico,
distributors are forecasting stable market conditions in the October/December
period.
Source: MEPS -
Developing Markets
Steel Review
Also see -BRIC
Steel Prices Online and
Indian
Steel Prices Online and
CIS Steel
Prices Online
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