PRICE GROWTH REMAINS LIMITED IN EMERGING
The MEPS BRIC average
transaction price, measured in US dollars, declined in June for five of the
eight finished steel product types published in last month’s Developing Markets’
Brazilian steel prices continued to advance, in June. Buyers requiring material
immediately placed orders at the higher mill list prices. Flat product
transaction values rose by between 4 and 6 percent, last month.
A number of Russian flat and long product prices continued to escalate, in June,
as domestic mills hiked up prices. Despite a tepid trading environment, local
producers secured double-digit price increases, month-on-month, on wire rod and
Buying activity is reportedly slow, in India, owing to the recent price
volatility and the onset of the monsoon season. Flat and long product values
mainly fell, in June, although cold rolled coil prices were similar to those
reported in our previous edition.
In China, flat and long product steel prices continued to fall significantly, in
June, as local mills ramped up production. The China Iron and Steel Association
reported that domestic daily steel output in mid-May rose to its highest level
since June 2015.
MEPS predicts that world steel prices are likely to be under pressure in the
second half of the year as low-priced exports from China are likely to become
available in global markets.
Source: MEPS -
Steel Review - June Edition
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