STEEL PRICES RISE IN EMERGING
MARKETS DESPITE SUBDUED BUYING ACTIVITY
According to MEPS,
Brazilian service centres are concerned that the latest domestic price levels
are not supported by market and economic fundamentals. Presently, most firms are
purchasing material only on a requirement basis.
Challenging business conditions persist in the Russian Federation. Trading
houses expressed bearish views over the growth prospects for domestic steel
consumption in the February-April period.
The outlook for the Indian steel market is unchanged. Distributors remain
divided about the government’s decision to extend the minimum import price
(MIP), which elapses on February 4. Currently, nineteen products are covered by
Ukrainian steelmakers are divided over the growth prospects for the long
products segments in 2017. In the past twelve months, underlying demand for
finished steel products has consistently fallen short of industry projections –
particularly, from construction firms and pipe fabricators.
Business confidence deteriorated in Turkey, this month. Local stockists contend
that the re-emergence of price volatility in domestic quotations has made it a
high risk to complete deals at this stage. The situation has been exacerbated by
the strength of the US dollar against the Turkish lira and weak economic
The trading environment is unchanged in the United Arab Emirates. Local service
centres are extremely reluctant to purchase material in what they deem as
precarious business conditions.
South African distributors plan to persevere with conservative procurement
strategies, next month. Shipments to the construction and infrastructure
projects remain scarce. End-users intend to steer clear of substantial flat
product purchases in the interim.
The outlook for the Mexican steel market is unchanged. Flat product spot market
sales decreased. Bearish buyers are reluctant to purchase at current transaction
values. The strong US dollar against the Mexican peso is also having a negative
effect on sales.
Source: MEPS -
Steel Review - January Edition
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