Underlying demand continues to be weak, in Brazil, according to MEPS. Hot rolled coil stockists are now predicting that domestic suppliers will roll over their transaction values in the next trading period.
Negative price sentiment persists in the commodity plate market. Steel intensive industries continue to press their domestic suppliers for lower transaction values. Meanwhile the Secretariat of Foreign Trade has initiated antidumping investigations regarding imports of hot rolled carbon steel plate from China.
Cold rolled coil traders expect their domestic suppliers to maintain their pricing positions in the next trading period. INDA has reported that imports of cold rolled coil increased, in May, by 6.1 percent month-on-month. The majority of this material was sourced from China.
The business environment in the wire rod market has become more difficult than it was at the beginning of the year. Local traders plan to persevere with cautious procurement strategies next month as a result.
Tough trading conditions persist in the structural sections market. The distribution network continues to be weighed down by high inventory levels and weak trading volumes. Similarly, merchant bar prices continued to be hampered by weak market fundamentals.