Uncertainty Dampens Trading Activity
in Emerging Steel Markets
Difficult trading conditions persist in
Brazil. Buyers started to push for lower prices, in view of the downward
movement being witnessed in other global steel markets.
Russian steelmakers are under pressure to lower plant utilisation rates to
support transaction values. Market fundamentals remain weak. Local trading
houses are booking for only immediate requirements due to price fluctuations and
working capital problems. Shipments to tube fabricators, OEMs and mechanical
engineering companies continue to underperform expectations.
Business sentiment deteriorated in India. Stockists operating in states,
adjacent to the Bay of Bengal, witnessed a fall in business activity with the
onset of the monsoon season. Meanwhile, steel manufacturers hoped that steady
pricing, in July, will persuade customers to place orders rather than postponing
The Ukrainian market is slow ahead of the summer vacations. Order intake at the
mills is very subdued, with few deals being concluded. Transaction figures fell
as producers became eager to book business.
Procurement activity in Turkey is forecast to pick up after the holiday period.
However, cautious service centres are booking for only immediate requirements,
in anticipation that the revival will be short-lived. The third quarter is
usually a slow season for the local steel industry
The United Arab Emirates market is very quiet, with no business activity of any
significance taking place during the holy month of Ramadan. Domestic producers
continually speak of higher prices but they are flexible when there is business
Source: MEPS -
Steel Review - June 2017 Edition
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of Developing Markets' Steel Review