DEVELOPING MARKETS STEEL PRICE
ROUNDUP FROM MEPS
have condemned the latest upward mill price offers given the current trading
climate. They are forecasting an upturn in import tonnages as a result.
The business climate in the Russian Federation remains arduous. Trading houses
are divided over the outlook for domestic steel quotations in the
The trading environment is unchanged in India. Stockists plan to postpone
purchases until the pricing scenario is more transparent. We note little
appetite for purchasing at present amongst construction firms. Importers remain
highly critical of the government’s decision to renew its minimum import price
mandates and instigate new provisional safeguard duties.
Chinese traders plan to persevere with cautious procurement strategies, next
month, despite it traditionally being the peak season for steel consumption. The
majority stress that the recent upward trend in domestic mill transaction values
is unsustainable and does not reflect real demand. Support from export customers
Ukrainian steelmakers struggled to adapt to the current domestic trading
environment. Shipments to industrial companies, in August, were weaker than
forecast, particularly to tube and pipe fabricators.
In Turkey, the domestic steelmakers failed to enforce price rises in weeks 31
and 32, despite a speculative rebound in the cost of ferrous scrap and billet.
End-user groups are only purchasing material for immediate needs.
Demand for construction steel in the United Arab Emirates remains muted.
Domestic steelmakers are finding it difficult to obtain a satisfactory price for
their September rolling campaigns. Risk-adverse traders plan to retain minimum
inventory in the interim.
Underlying demand in South Africa has weakened and shows no signs of picking up
in the near future. End-users remain adamant that local price quotations are too
Buying sentiment is unchanged in Mexico. Stockists intend to maintain their
conservative inventory levels and closely monitor the domestic/import price
premium. The recent depreciation of the national currency against the US dollar
has only exacerbated the situation. The National Chamber of Iron and Steel
Industry (CANACERO) has welcomed the Ministry of Economy’s decision to set
antidumping duties on wire rod and coated flat steel imports.
Source: MEPS -
Steel Review - August Edition
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