DEVELOPING MARKETS STEEL PRICE ROUNDUP
According to MEPS, the
business environment remains challenging in Brazil. Domestic distributors are
extremely reluctant to purchase material in, what they deem as, tricky market
Price volatility has restricted buying activity in the Russian Federation. Local
trading houses have questioned the necessity of the latest round of price hikes.
The majority of steel users believe that the latest initiative is unjustified
and not supported by underlying demand.
The outlook for India is unchanged. The Joint Plant Committee (JPC) has reported
that domestic finished steel consumption in the first eleven months of the
fiscal year ending March 2016, totalled 65.93 million tonnes - up 3.6 percent
compared with the corresponding period in the previous fiscal year.
The second quarter is expected to be a difficult trading period for the
Ukrainian steel industry. The local association of metal producers,
Metallurgprom, has forecast that finished steel production in May will reach 2.2
million tonnes – up 0.1 percent compared with March’s daily output.
Business sentiment remains tepid amongst Turkish traders. The majority are
worried that their domestic suppliers will ignore market conditions and continue
to issue double digit price increases.
Procurement activity remains slower than expected in the United Arab Emirates.
Local traders are tightly controlling inventory levels. Purchasing attitudes
have been unsettled by the aggressive pricing strategies adopted by foreign
suppliers. Emirati rolling mills raised their selling figures for June and
The business climate in the Mexican steel market is unchanged. Local
distributors are wary of holding too much inventory over the next two months,
fearing a price correction.
Source: MEPS -
Steel Review - April Edition
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