DEVELOPING MARKETS HIGHLIGHTS – FROM
attempted to push through a price increase for October’s production campaign.
Predictably, distributors and end-users have been reluctant to commit to forward
Russian trading houses remain adamant that the latest initiative to advance flat
product transaction values does not reflect real demand. Meanwhile, long product
steelmakers have again delayed releasing their November basis quotations.
Negative price expectations have gained momentum in India. Local steelmakers are
faced with a dilemma of whether to attempt to ride out the difficult domestic
trading conditions, or downgrade planned production targets. Meanwhile, the
Chinese steel market remains unsettled. Distributors and downstream industries
plan to avoid holding or building inventory in the interim.
Ukrainian finished steel prices have continued to trend downwards. The local
association of metal producers, Metallurgprom, has forecast that crude steel
production in November will reach 2.06 million tonnes – up 1.9 percent compared
with September’s output.
Turkish steelmakers have struggled to adapt to October’s unpredictable business
environment. Local steel traders are booking material for only short term needs,
in anticipation of continuing price reductions.
Procurement activity in the United Arab Emirates was less vigorous, this month,
than in September. Local stockists have been wary of finalising purchases in a
falling market. Meanwhile, rolling mills opted to reduce their selling figures
owing to the difficult market conditions and strong price competition from
Weak underlying demand remains a constraint on Mexican steelmakers’ ambitions to
lift transaction values. Meanwhile, the National Chamber of Iron and Steel
Industry (CANACERO) has welcomed the government’s decision to impose a temporary
15 percent import tariff on five steel products – including cold rolled coil and
wire rod. This measure will be in place for a period of six months.
Source: MEPS -
Steel Review - October Edition
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