DEVELOPING MARKETS HIGHLIGHTS – FROM
The outlook for the
Brazilian steel industry is unchanged. Domestic steelmakers have begun to lower
production targets for finished steel long products, citing overcapacity and
cuts to state-funded investment projects.
The business climate in the Russian steel market is unchanged. Local trading
houses are extremely reluctant to purchase material in, what they deem as,
tricky trading conditions.
Indian steelmakers are under pressure to slowdown the pace of their expansion
programmes. Underlying demand for finished steel products has been weaker than
projected, fuelling fears of overcapacity and a deteriorating pricing
Arduous trading conditions persist in the Chinese steel market. Buying sentiment
has been weighed down by the slowdown in construction activity and weak economic
Ukrainian trading houses remain hesitant about placing orders, in the backdrop
of tight credit conditions and low end-user demand. The local association of
metal producers, Metallurgprom, has forecast that crude steel production in
August will total 2.2 million tonnes – up 9.8 percent compared with June’s
Business activity has been slow in the Turkish market. Price-cutting undertaken
by tier-one steelmakers has only exacerbated the situation.
Traders operating in the United Arab Emirates are divided over whether the
market will pick up in August. Buyers have refrained from purchasing finished
steel products, expecting additional concessions. Price competition from
Chinese, Indian and CIS suppliers has intensified over the period surveyed.
Mexican steelmakers are under growing pressure to downgrade their production
capacity, as a result of stagnant domestic sales volumes. Meanwhile, the
National Chamber of Iron and Steel Industry (CANACERO) has reported that imports
of finished steel, in the January-May 2015 period, stood at 5.62 million tonnes
– up 11.3 percent, compared with the same period a year ago.
Source: MEPS -
Steel Review - July Edition
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