DEVELOPING MARKETS HIGHLIGHTS – FROM
MEPS INTERNATIONAL LTD
Brazilian steelmakers remain optimistic
over the growth prospects for domestic steel consumption. The Instituto Ašo
Brasil (IABr) has reported that domestic finished steel sales in January
totalled 1.58 million tonnes – down 8.5 percent, compared with last year’s
Russian trading houses have questioned the necessity of the latest round of
price hikes. The majority stress that the latest initiative is unsustainable and
does not reflect real demand.
The outlook for the Indian market is unchanged. Local service centres plan to
keep stocks to a minimum and only procure on a requirement basis..
The business climate in China is unchanged since our January report. Consumption
volumes in the pre-Lunar New Year period were weaker than forecast. Inventories
throughout the supply chain have expanded as a result.
Buying activity in Ukraine’s key consuming industries of construction and
shipbuilding are expected to remain slow in March. Price volatility has hampered
trading in Turkey. End-user groups envisage small price reductions next month,
citing lower raw material costs.
Business sentiment has deteriorated in the United Arab Emirates. Local traders
are extremely reluctant to purchase material in what they deem as precarious
trading conditions. Several firms plan to observe the global reaction to the
re-opening of the Chinese market. Moreover, Emirati rolling mills have opted to
roll over their selling figures.
Source: MEPS -
Steel Review - February Edition
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