BRIC STEEL MARKET ROUND-UP FROM MEPS
The MEPS BRIC average transaction price,
measured in US dollars, increased in only three of the eight finished carbon
steel product types published in
MEPS Developing Markets’ Steel Review.
Brazilian distributors are forecasting underlying demand to soften in the
June-July period. During the FIFA World Cup tournament, key downstream
industries intend to either shutdown or operate a reduced number of shifts. The
Instituto Ašo Brasil (IABr) has reported that domestic sales of finished steel
products totalled 1.78 million tonnes in April – an increase of 5.4 percent
compared with the corresponding period last year. Flat steel products accounted
for 994,100 tonnes.
The Russian steel industry remains optimistic over the general outlook for
consumption and production in 2014. Shipments to construction and infrastructure
projects are forecast to remain upbeat in June. Bullish internal producers have
begun reducing their discounts and enforcing stricter payment terms.
In India, the Supreme Court has issued an interim order to temporarily suspend
mining operations at 20 iron ore mines in Odisha state. Internal steelmakers
have warned that any delay in renewing these licences would tighten iron ore
supplies and fuel higher steel prices. The Joint Planning Committee (JPC) has
reported that domestic consumption of finished steel in April totalled 5.84
million tonnes – an increase of 3.4 percent, year-on-year.
In China, business confidence has deteriorated, in May. Chinese steel traders
are booking material for only immediate requirements, in anticipation of
continuing price reductions. 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 May, totalled 1.824 million tonnes – an increase of 1.6 percent from
the last ten days of April.
Source: MEPS -
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