PROCUREMENT ACTIVITY REMAINS
UNSETTLED IN EMERGING STEEL MARKETS
According to MEPS, Russian
trading houses expressed reservations over the necessity of the latest round of
price hikes. The majority stress that the initiative is unsustainable and does
not reflect real demand. End-users are exhibiting little urgency to purchase
material, even with discounts granted.
The Indian steel market has been unsettled by pre-budget expectations, weak
market fundamentals and volatile raw material costs. Attention is being paid to
the negotiation of coking coal and iron ore contracts.
The outlook for the Ukrainian market is unchanged. Long product steel sales fell
and are unlikely to recover until the construction season restarts. Meanwhile,
steel production has been disrupted due to raw material shortages.
The business climate remained unsettled in Turkey, this month. Local service
centres plan to keep stocks low in the near term and are purchasing cautiously.
Construction demand is lower than anticipated. Flat product buyers are reluctant
to take positions, amid changeable domestic and foreign quotations.
Price volatility unsettled buying activity in the United Arab Emirates, this
month. 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. In early trading, Emirati
rolling mills opted to lower their selling figures.
Source: MEPS -
Steel Review - February Edition
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