DEVELOPING MARKETS HIGHLIGHTS FROM MEPS
Russian trading houses have queried
whether the latest domestic price levels are supported by market and economic
fundamentals. The strength of the US dollar against the Russian rouble has only
exacerbated the situation. Moreover, price growth in 2015 is predicted to be
difficult, as more production capacity is scheduled to be commissioned.
Indian secondary producers have struggled to adapt to November’s unpredictable
business environment. Primary steelmakers have continued to search for new
overseas buyers. However, the weak rupee has given assistance to the export
drive, whilst also discouraging import activity.
The Chinese steel market has entered a period of low seasonal demand. Local
traders expect steel consumption to improve after the Lunar New Year holidays,
supported by firmer orders from the construction and manufacturing sectors.
Ukrainian steel producers are growing more pessimistic about the prospects for
domestic finished steel consumption in the first quarter of 2015. Turkish
steelmakers are faced with a dilemma of whether to ride out the difficult
trading conditions, or downgrade planned production targets.
Price volatility has undermined market sentiment in the United Arab Emirates.
Local stockists contend that the re-emergence of price volatility in foreign
quotations has made it too risky to complete any deals at this stage. Emirates
Steel Industries (ESI) and Conares have opted to downgrade their selling
figures, under pressure from strong foreign price competition.
South African distributors plan to persevere with conservative procurement
strategies next month. Sales volumes are forecast to be muted over the holiday
shutdown period. The outlook for the Mexican steel market is unchanged.
Underlying demand continues to be driven by shipments to the automotive and
construction sectors. Distributors are worried that the Peņa Nieto government
will impose stricter countervailing duties on steel imports.
Source: MEPS -
Steel Review - November Edition
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