According to MEPS, Brazilian service centres are concerned that the latest domestic price levels are not supported by market and economic fundamentals. Presently, most firms are purchasing material only on a requirement basis.
Challenging business conditions persist in the Russian Federation. Trading houses expressed bearish views over the growth prospects for domestic steel consumption in the February-April period.
The outlook for the Indian steel market is unchanged. Distributors remain divided about the government’s decision to extend the minimum import price (MIP), which elapses on February 4. Currently, nineteen products are covered by the framework.
Ukrainian steelmakers are divided over the growth prospects for the long products segments in 2017. In the past twelve months, underlying demand for finished steel products has consistently fallen short of industry projections – particularly, from construction firms and pipe fabricators.
Business confidence deteriorated in Turkey, this month. Local stockists contend that the re-emergence of price volatility in domestic quotations has made it a high risk to complete deals at this stage. The situation has been exacerbated by the strength of the US dollar against the Turkish lira and weak economic fundamentals.
The trading environment is unchanged in the United Arab Emirates. Local service centres are extremely reluctant to purchase material in what they deem as precarious business conditions.
South African distributors plan to persevere with conservative procurement strategies, next month. Shipments to the construction and infrastructure projects remain scarce. End-users intend to steer clear of substantial flat product purchases in the interim.
The outlook for the Mexican steel market is unchanged. Flat product spot market sales decreased. Bearish buyers are reluctant to purchase at current transaction values. The strong US dollar against the Mexican peso is also having a negative effect on sales.