DEVELOPING MARKETS STEEL PRICE
ROUNDUP FROM MEPS
Downstream demand in
Brazil is expected to remain sluggish in the August/September period. Domestic
buyers noted that the current initiative to lift prices is ill-timed,
counterproductive and will only escalate import tonnages.
Challenging business conditions persist in the Russian Federation. Shipments to
tube fabricators, OEMs and mechanical engineering companies have reduced more
than expected. Overseas business is flat, due to weak European economies, a lack
of demand from key customers in the Asian region and overcapacity in China.
Indian stockists are booking for immediate requirements only due to continuing
price fluctuations. The monsoon season has deflated underlying demand.
The Chinese steel industry has struggled to adapt to the current domestic
trading environment. In response to improving market conditions, a number of
leading steelmakers have raised their official ex-works figures for August,
eager to cover their input costs, and to recover losses accumulated this year.
In Turkey, the domestic steelmakers have been unable to apply any price
improvements for finished steel products. Deliveries to downstream steel
consuming industries have slowed, amid negative price expectations, weak
post-Ramadan demand growth and political uncertainty. End-users intend to
minimise large purchases until the situation improves.
The Emirati market is slow ahead of the summer months. Shipments to the
construction sector and pipe fabricators are forecast to remain lacklustre in
the short term. Transaction figures have fallen as local producers and foreign
suppliers become more desperate to book business. The distribution network is in
a ‘wait and see’ mode as a result.
Difficult trading conditions persist in South Africa. Anxious service centres
are now striving to offload inventory at below cost to minimise potential losses
and to ease working capital problems.
Price sentiment in Mexico has been unsettled by the domestic mills’ “US dollar
indexed” pricing strategies and weak economic fundamentals. Distributors
condemned the latest upward adjustments as “unwarranted” given the current
Source: MEPS -
Steel Review - July Edition
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