STEEL PRICES RISE IN DEVELOPING
COUNTRIES IN NOVEMBER - MEPS
prices, measured in US dollars, increased in November for all eight finished
steel product types published by MEPS. This occurred despite lacklustre demand
in many of the countries researched. An upturn in the cost of raw materials was
the main driver behind these advances.
Brazilian steelmakers hiked prices, citing the rising cost of iron ore and
metallurgical coking coal. However, industrial manufacturers strongly criticised
the mills’ actions.
Russian transaction values, on the whole, moved upwards, over the last four
weeks. Nevertheless, local distributors were wary of holding too much inventory
in the approaching winter trading period. The downtrend in domestic consumption
is expected to gather momentum, in December.
Indian transaction values slipped, due to currency exchange rate movements.
There remained no substantial improvement in demand, in November. Sales fell
after the government’s currency demonetisation policy announcement.
Chinese selling figures surged, in November, due to a rally in futures markets
and speculation about capacity cuts. Soaring raw material expenditure, for blast
furnace producers, is supporting the escalation of domestic transaction values.
Prices in Turkey have risen significantly, since the end of October. Despite
this, distributors continued to purchase cautiously. The trading environment
remains challenging in Ukraine, Mexico and the UAE. Sales volumes are expected
to soften in the short term.
Source: MEPS -
Steel Review - November Edition
Free Sample copy
of Developing Markets' Steel Review