Tag Archives: Developing Markets Steel Review

PROCUREMENT ACTIVITY REMAINS UNSETTLED IN EMERGING STEEL MARKETS

According to MEPS, Russian trading houses expressed reservations over the necessity of the latest round of price hikes. The majority stress that the initiative is unsustainable and does not reflect real demand. End-users are exhibiting little urgency to purchase material, even with discounts granted.

The Indian steel market has been unsettled by pre-budget expectations, weak market fundamentals and volatile raw material costs. Attention is being paid to the negotiation of coking coal and iron ore contracts.

The outlook for the Ukrainian market is unchanged. Long product steel sales fell and are unlikely to recover until the construction season restarts. Meanwhile, steel production has been disrupted due to raw material shortages.

The business climate remained unsettled in Turkey, this month. Local service centres plan to keep stocks low in the near term and are purchasing cautiously. Construction demand is lower than anticipated. Flat product buyers are reluctant to take positions, amid changeable domestic and foreign quotations.

Price volatility unsettled buying activity in the United Arab Emirates, this month. Local traders are extremely reluctant to purchase material in, what they deem as, precarious trading conditions. Several firms plan to observe the global reaction to the re-opening of the Chinese market. In early trading, Emirati rolling mills opted to lower their selling figures.

Source: MEPS – Developing Markets Steel Review – February Edition

BRIC STEEL PRICES INCREASE IN MARCH

BRIC steel prices may have reached their lowest point after rebounding slightly, in March.

In this month’s issue of the Developing Markets’ Steel Review, MEPS reported that the BRIC average transaction price advanced across all the flat and long products surveyed.

Chinese steel mill price offers soared, in March, as buyers rebuilt inventories following the Lunar New Year holidays. Domestic crude steel production reduced by 4 percent, in February, compared with twelve months ago. Supply may decline further in the near term, as Chinese steel mills, in Tangshan, are reportedly being ordered to reduce pollution during an international flower show between April and October.

Brazilian flat product prices are steady, this month. Hot dipped galvanized transaction values increased marginally as imports fell, in February, by 49.5 percent, month-on-month. However, domestic long product figures continued to fall as market activity remained lacklustre.

In Russia, local producers secured higher transaction prices, in March. Cold rolled coil figures rose by 4 percent, month-on-month. Long product values advanced despite order intake remaining muted.

Following the introduction of the minimum import price framework, in India, we noted that buyers remain hesitant to place orders. However, flat and long product values increased marginally, in March.

Source: MEPS – Developing Markets Steel Review – March 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 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

INDIAN STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL LTD

India transaction values weakened in August, month-on-month, according to MEPS. JSW Steel and Essar Steel have lobbied the Modi government to impose, a provisional safeguard duty, on all imports of hot rolled coil and other flat finished steel products.

Cold rolled coil stockists were wary about rebuilding inventories fearing that prices may fall further. Meanwhile traders of galvanised coil have expressed concerns regarding this year’s monsoon rains. They fear that poor crop yields will deflate downstream demand from the agricultural sector.

The Indian wire rod market has continued to endure challenging trading conditions. Dealers in Mumbai and Raipur were not optimistic about any price increases in August.

Activity in the structural sections market continued to be challenging. Buyers preferred to delay bookings, in anticipation of further price concessions from domestic suppliers.

Source: MEPS – Developing Markets Steel Review – August Edition

BRAZIL STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL LTD

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.

Source: MEPS – Developing Markets Steel Review – June Edition