STEEL PRICES RISE IN EMERGING
MARKETS BUT BUYERS REMAIN CAUTIOUS
According to MEPS
International Ltd, the Brazilian steel industry has struggled to adapt to the
unpredictable business environment. Bearish distributors plan to persevere with
conservative purchasing strategies, in November, citing price volatility and
weak economic fundamentals.
Russian steel producers are divided over the prospects for domestic steel
consumption in the final trimester of 2016. Predictably, distributors and
end-users are reluctant to commit to forward orders. Long products’ steelmakers
have downgraded their November basis quotations, as a result.
Indian brokers are optimistic that sales volumes will improve after the festival
season (October to November). These firms are booking for immediate requirements
only, due to continuing price fluctuations. General sentiment regarding the new
minimum import price mandate and provisional safeguard duties are unchanged. The
measures have been held responsible for the latest price initiative undertaken
by primary steelmakers.
Business confidence remains unsettled in Turkey. Local service centres are
extremely reluctant to purchase material in, what they deem as, precarious
Price volatility continues to hamper sales volumes in the United Arab Emirates.
Additionally, state-funded construction and infrastructure activity remains
sparse. Despite this, Emirati rolling mills opted to, marginally, increase their
selling figures for November production, amidst the higher cost of key
steelmaking raw materials and reduced price competition from foreign suppliers.
Mexican service centres have, once again, started to query whether the latest
domestic price levels are supported by market and economic fundamentals. Several
buyers are forecasting additional price concessions from domestic suppliers next
Source: MEPS -
Steel Review - October Edition
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