Category Archives: Emerging Markets Steel Prices

STEEL PRICES RISE IN EMERGING MARKETS BUT BUYERS REMAIN CAUTIOUS

According to MEPS International Ltd, the Brazilian steel industry has struggled to adapt to the unpredictable business environment. Bearish distributors plan to persevere with conservative purchasing strategies, in November, citing price volatility and weak economic fundamentals.

Russian steel producers are divided over the prospects for domestic steel consumption in the final trimester of 2016. Predictably, distributors and end-users are reluctant to commit to forward orders. Long products’ steelmakers have downgraded their November basis quotations, as a result.

Indian brokers are optimistic that sales volumes will improve after the festival season (October to November). These firms are booking for immediate requirements only, due to continuing price fluctuations. General sentiment regarding the new minimum import price mandate and provisional safeguard duties are unchanged. The measures have been held responsible for the latest price initiative undertaken by primary steelmakers.

Business confidence remains unsettled in Turkey. Local service centres are extremely reluctant to purchase material in, what they deem as, precarious trading conditions.

Price volatility continues to hamper sales volumes in the United Arab Emirates. Additionally, state-funded construction and infrastructure activity remains sparse. Despite this, Emirati rolling mills opted to, marginally, increase their selling figures for November production, amidst the higher cost of key steelmaking raw materials and reduced price competition from foreign suppliers.

Mexican service centres have, once again, started to query whether the latest domestic price levels are supported by market and economic fundamentals. Several buyers are forecasting additional price concessions from domestic suppliers next month.

Source: MEPS – Developing Markets Steel Review – October Edition

DEVELOPING MARKETS STEEL PRICE ROUNDUP FROM MEPS

Brazilian distributors 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 September-October period.

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 is mixed.

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 high.

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 – Developing Markets Steel Review – August Edition

DEVELOPING MARKETS STEEL PRICE ROUNDUP FROM MEPS

According to MEPS, the business environment remains challenging in Brazil. Domestic distributors are extremely reluctant to purchase material in, what they deem as, tricky market conditions.

Price volatility has restricted buying activity in the Russian Federation. Local trading houses have questioned the necessity of the latest round of price hikes. The majority of steel users believe that the latest initiative is unjustified and not supported by underlying demand.

The outlook for India is unchanged. The Joint Plant Committee (JPC) has reported that domestic finished steel consumption in the first eleven months of the fiscal year ending March 2016, totalled 65.93 million tonnes – up 3.6 percent compared with the corresponding period in the previous fiscal year.

The second quarter is expected to be a difficult trading period for the Ukrainian steel industry. The local association of metal producers, Metallurgprom, has forecast that finished steel production in May will reach 2.2 million tonnes – up 0.1 percent compared with March’s daily output.

Business sentiment remains tepid amongst Turkish traders. The majority are worried that their domestic suppliers will ignore market conditions and continue to issue double digit price increases.

Procurement activity remains slower than expected in the United Arab Emirates. Local traders are tightly controlling inventory levels. Purchasing attitudes have been unsettled by the aggressive pricing strategies adopted by foreign suppliers. Emirati rolling mills raised their selling figures for June and July’s production.

The business climate in the Mexican steel market is unchanged. Local distributors are wary of holding too much inventory over the next two months, fearing a price correction.

Source: MEPS – Developing Markets Steel Review – April Edition

DEVELOPING MARKETS STEEL PRICE ROUNDUP FROM MEPS

The outlook for demand in Brazil is unchanged. Local steelmakers are under pressure to reduce production targets in line with steel consumption rates.

Russian steel producers are growing more pessimistic about the prospects for domestic finished steel consumption in the first quarter of 2016. The majority have continued to search for new overseas buyers.

The market for finished steel in India has remained subdued in the post-Diwali period. Local service centres are extremely reluctant to purchase material in, what they deem as, tricky trading conditions. End-users have been wary of finalising purchases in a falling market.

The Ukrainian steel market has entered a period of low seasonal demand. Shipments to industrial companies have continued to deteriorate in the trading period surveyed.

Turkish steelmakers are increasingly looking overseas for new buyers. Local stockists plan to persevere with conservative inventory levels in the short term.

The business environment remains challenging in the United Arab Emirates. Local construction firms are unwilling to purchase more steel than they need to meet their near-term requirements. The downward movement in import quotations has made them reluctant to do any significant deals at this stage.

Mexican distributors plan to hold off purchasing until January to see how demand develops. The National Chamber of Iron and Steel Industry (CANACERO) continues to press the government to impose stricter trading rules and criteria for importing steel.

Source: MEPS – Developing Markets Steel Review – November Edition

 

DEVELOPING MARKETS HIGHLIGHTS – FROM MEPS INTERNATIONAL LTD

Brazilian steelmakers attempted to push through a price increase for October’s production campaign. Predictably, distributors and end-users have been reluctant to commit to forward orders.

Russian trading houses remain adamant that the latest initiative to advance flat product transaction values does not reflect real demand. Meanwhile, long product steelmakers have again delayed releasing their November basis quotations.

Negative price expectations have gained momentum in India. Local steelmakers are faced with a dilemma of whether to attempt to ride out the difficult domestic trading conditions, or downgrade planned production targets. Meanwhile, the Chinese steel market remains unsettled. Distributors and downstream industries plan to avoid holding or building inventory in the interim.

Ukrainian finished steel prices have continued to trend downwards. The local association of metal producers, Metallurgprom, has forecast that crude steel production in November will reach 2.06 million tonnes – up 1.9 percent compared with September’s output.

Turkish steelmakers have struggled to adapt to October’s unpredictable business environment. Local steel traders are booking material for only short term needs, in anticipation of continuing price reductions.

Procurement activity in the United Arab Emirates was less vigorous, this month, than in September. Local stockists have been wary of finalising purchases in a falling market. Meanwhile, rolling mills opted to reduce their selling figures owing to the difficult market conditions and strong price competition from foreign sources.

Weak underlying demand remains a constraint on Mexican steelmakers’ ambitions to lift transaction values. Meanwhile, the National Chamber of Iron and Steel Industry (CANACERO) has welcomed the government’s decision to impose a temporary 15 percent import tariff on five steel products – including cold rolled coil and wire rod. This measure will be in place for a period of six months.

Source: MEPS – Developing Markets Steel Review – October Edition

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 fundamentals.

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 – Developing Markets Steel Review – September Edition