DEVELOPING MARKETS STEEL PRICE
ROUNDUP FROM MEPS
Brazilian distributors are
only booking for immediate requirements due to continuing price fluctuations and
weak economic fundamentals. The conservative purchasing strategy is expected to
continue for the foreseeable future.
Russian distributors remain bearish over the outlook for domestic finished steel
consumption in the October-November period. End-user groups are purchasing
material for immediate needs only. Meanwhile, long product steelmakers postponed
releasing their basis quotations for the next trading period.
Indian steelmakers are optimistic that trading volumes will improve in the near
term, supported by state-funded infrastructure projects and a series of trade
protection measures – such as, new minimum import price mandates and provisional
safeguard duties. Moreover, business confidence picked up, coinciding with the
imminent end of the monsoon season.
The Ukrainian steel industry has struggled to adapt to the muted domestic
trading environment. Local stockists report that the settlement of payments from
customers remains a problem.
Turkish steel producers are divided over the prospects for domestic steel
consumption in the final trimester of 2016. Flat product traders contend that
the latest price initiative undertaken by local steelmakers is ill-timed,
counterproductive and will only escalate import tonnages from Russia and
Business confidence remains downbeat in the United Arab Emirates. Local trading
houses are reluctant to replenish their inventories. They are uncertain about
whether industrial activity and construction work will improve in October.
The trading environment remains challenging in South Africa. Steel manufacturers
are reluctant to increase production capacity in the absence of sustainable
The outlook for the Mexican steel market is unchanged. Local stockists plan to
persevere with conservative bookings, in anticipation of price concessions from
Source: MEPS -
Steel Review - September Edition
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