PRICE VOLATILITY RETURNS TO THE EMERGING
The Brazilian steel industry remains positive on the
general outlook for production and consumption in November. However,
distributors have queried whether the new, higher domestic price levels are
supported by market and economic fundamentals.
Russian steelmakers downgraded transaction values for several steel products in
October. Local trading houses are expected to persevere with cautious
procurement strategies in anticipation of weak shipments to the construction
sector and other downstream industries.
The Turkish steel industry is expected to bring production into line with
consumption rates. Distributors expect their domestic suppliers to pursue price
growth in weeks 43 and 44, following the recent upturn in the cost of key
steelmaking raw materials - particularly, iron ore and ferrous scrap material.
Support from external demand is limited.
Procurement activity in the United Arab Emirates was less vigorous than in
September. Construction activity exhibited no improvement in the period after
the festival of Eid Al-Adha. Emirati traders do not require delivery of new
steel ahead of Al-Hijra (Islamic New Year).
Source: MEPS -
Free Sample copy
of Developing Markets' Steel Review