DEVELOPING MARKETS STEEL MARKET
ROUNDUP FROM MEPS
The business environment
remains challenging in the Russian Federation, according to MEPS. Downstream
steel buyers are reluctant to make deals as they would like to get a clearer
market picture. The flat product purchasers reiterate that the latest price
initiative is unwarranted and does not reflect real demand.
Indian stockists queried whether the latest domestic long product offers are
supported by market and economic fundamentals. MEPS detects a reluctance on the
part of end-users to commit to forward orders.
The outlook for the Ukrainian market is unchanged. Domestic steelmakers are
forecasting that the second quarter will be a difficult trading period. MEPS
notes little appetite for purchasing amongst construction firms, at present.
Buying sentiment in Turkey remained unsettled, in March. Local service centres
plan to persevere with conservative inventory levels in the interim period,
citing that the uncertainty surrounding the April constitutional reform, had
depressed activity in the construction and industrial sectors. Exporters are
focusing on the Asian market, owing to increased competition, from Russian and
Indian suppliers, in the Middle East and North African regions.
Demand for construction steel in the United Arab Emirates remains muted. The
distribution network is in a ‘wait and see’ mode as a result. Importers are
hesitant about booking forward orders, with the month of Ramadan (commencing May
26) and summer season looming. Business traditionally slackens in the finished
steel segment, during this period.
South African stockists expect sales volumes to stay muted in the second
quarter, citing weak economic fundamentals and the government’s failure to
promote a well-defined industrial policy. End-user groups are purchasing
material only for immediate needs.
Mexican distributors are wary of carrying too much inventory over the next two
months, fearing a price correction. Developments across the border in the United
States continue to be watched carefully.
Source: MEPS -
Steel Review - March 2017 Edition
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