DEVELOPING MARKETS ROUNDUP FROM MEPS
The outlook for the
Brazilian steel market remains precarious. Distributors are booking for only
immediate requirements due to continuing price fluctuations and weak economic
Russian steelmakers have had mixed success in their efforts to advance
transaction values. Local trading houses stress that the latest price initiative
does not reflect real demand. Long product steelmakers have delayed releasing
their October basis quotations.
Price volatility has hampered trading in India. Domestic steelmakers have
continued to press the government to give locally manufactured primary steel
products extra protection from third country suppliers.
Chinese steel prices have continued to trend downwards. Distributors have been
reluctant to place new business, citing tepid end-user demand.
Ukrainian trading houses are booking for immediate requirements only, due to
high inventory levels and in anticipation of further price reductions.
The Turkish steel industry has struggled to adapt to the muted domestic trading
environment. Local service centres are extremely reluctant to purchase material
in, what they deem as, tricky trading conditions.
The business climate in the United Arab Emirates is unchanged since our August
report. Procurement activity by small and medium sized construction companies
has stagnated. The downward movement in import quotations has made it too risky
for them to do any deals at this stage.
Conditions in the South African market have exhibited little sign of
improvement. Local service centres plan to persevere with conservative
procurement strategies in October.
Source: MEPS -
Steel Review - September Edition
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