DEVELOPING MARKETS HIGHLIGHTS – FROM
MEPS INTERNATIONAL LTD
The Instituto Ašo Brasil (IABr) has
reported that domestic finished steel sales in March totalled 1.93 million
tonnes – up 30.4 percent, compared with the previous month’s figure. The
organisation is cautiously optimistic over the outlook for the April-June
quarter, citing weak underlying demand from automotive part manufacturers and
Challenging trading conditions persist in the Russian Federation. Local trading
houses are booking for immediate requirements only, due to high inventory levels
and in anticipation of further price reductions. Long product steelmakers have
delayed releasing their May basis quotations.
In India, Associated Chambers of Commerce & Industry of India (Assocham) has
urged the Modi government to reduce domestic iron ore prices. The association
has stated that a cut of around 25 percent is required to improve the
competitiveness of domestic steelmakers.
The Chinese steel industry has struggled to adapt to the muted domestic trading
environment. The China Iron & Steel Association (CISA) has reported that the
daily output of crude steel by the leading mills in the first ten days of April
totalled 1.7 million tonnes – an increase of 1.1 percent compared with the
corresponding period last month.
Procurement activity in Ukraine remains erratic. Shipments to the construction
sector and pipe fabricators were weaker than forecast.
Business sentiment has remained lacklustre in Turkey. Local service centres are
extremely reluctant to purchase material in what they deem to be precarious
trading conditions. The strength of the US dollar against the Turkish lira has
only exacerbated the situation.
The trading environment is unchanged in the United Arab Emirates. Shipments to
construction and infrastructure projects remain subdued. The business climate in
South Africa has exhibited little sign of improvement. Local stockists plan to
keep inventories low in the near term and are purchasing cautiously.
Source: MEPS -
Steel Review - April Edition
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