WEAK DEMAND GROWTH UNDERMINES PRICE
SENTIMENT IN EMERGING STEEL MARKETS
Brazilian domestic steel distributors
have begun to press for additional price concessions from their local suppliers.
The Instituto Ašo Brasil (IABr) has reported that finished steel sales in the
home market during April totalled 1.51 million tonnes – down 22.0 percent,
compared with the previous month’s figure.
Difficult business conditions persist in the Russian Federation. Local trading
houses plan to postpone purchases until the pricing scenario is more
transparent. Domestic steelmakers have delayed releasing their preliminary June
basis quotations for both flat and long finished steel products.
India’s Ministry of Steel has proposed imposing stricter quality controls for
semi-finished and finished steel products imported into the country. If the new
measures are formally approved, materials covered by the new codes would have to
be certified by the Bureau of Indian Standards (BIS).
The market remains challenging in Ukraine. The May trading period was shortened
by the close proximity of the Easter and national holidays.
Turkish steelmakers have had mixed success in their efforts to obtain higher
transaction values to distributors. The strength of the US dollar against the
local currency remains a problem.
Uncertainty continues to unsettle business confidence in the United Arab
Emirates. Local distributors are forecasting no significant price recovery in
either the flat or long products segments in the interim. The majority plan to
purchase only on a requirement basis until the pricing scenario is more
South African service centres are growing more pessimistic about the prospects
for domestic steel consumption in 2015. Deliveries to downstream industries
continue to underperform.
Challenging business conditions persist in Mexico. Local steelmakers are
expected to shadow the pricing strategies of their US counterparts next month.
Source: MEPS -
Steel Review - May Edition
Free Sample copy
of Developing Markets' Steel Review