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.