Buying Sentiment Deteriorates in
Emerging Steel Markets
conditions persist in the Russian Federation, according to MEPS. Domestic
steelmakers are pinning their hopes on forecasts of better sales in the coming
months. The flat product market continues to stagnate. Construction-related
trades are also subdued, since building work is slow to improve, despite the
onset of more hospitable weather conditions.
Procurement activity in India, this month, is less vigorous than in April.
Business confidence weakened in recent weeks. Stockists are in ‘wait and see’
mode due to price fluctuations and uncertainties as the monsoon season
approaches. Deliveries to downstream industries underperform. Meanwhile,
steelmakers continue to press the government for additional measures to restrict
Activity remained subdued in Ukraine, partly due to the Easter break and two
public holiday weekends at the beginning of May. Resale values are poor due to
severe competition in the distribution industry. Shipments to the construction
industry are still slow with no positive developments on the horizon.
In the United Arab Emirates, many steel distributors and end-users are adopting
a wait-and-see approach, amid the recent market volatility and impending holy
month of Ramadan. Domestic rolling mills continue to attempt to recapture market
share from overseas suppliers.
The South African market situation is weak. Stockists are less keen to purchase
from overseas suppliers, fearing that the authorities will implement
retrospective trade action.
Prices are unchanged in the Mexican market, with buyers anticipating stable, or
slightly lower, values in the third trimester. Service centres are busy
supplying the auto industry and sales to construction are also satisfactory.
However, distributors’ margins remain low because of overcapacity in that
sector. Developments across the border in the United States continue to be
Source: MEPS -
Steel Review - May 2017 Edition
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