Tag Archives: Emerging


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


According to MEPS, Brazilian stockists remain adamant that any move by domestic suppliers to pursue price growth would be counterproductive and stifle what little buying interest exists. Most consignments are small bundles. Strict lending conditions and shrinking credit facilities are negatively affecting trade.

The outlook for demand in the Russian Federation is unchanged. Underlying consumption for finished steel products fell short of industry projections – particularly, from construction firms and pipe fabricators. The situation has been exacerbated by the aggressive pricing positions adopted by domestic steelmakers. Despite this, distributors plans to persevere with conservative inventory levels over the winter trading period.

Activity remained subdued, in India, in early December. Traders intend to tightly control inventory levels due to limited buying activity. Construction firms continue to be hampered by working capital problems – a consequence of the government’s currency demonetisation policy. However, this has not deterred local producers from lifting their domestic finished steel offers. Third country imports are in short supply.

Purchasing activity continues to be limited in Ukraine. Distributors report that trading remains light for both the number of bookings and volumes transacted. Tight lending conditions have squeezed investment in construction and infrastructure projects.

The Turkish finished steel market shows no signs of a substantial improvement amid weak demand. Producers, operating EAF steelmaking facilities, responded to the escalating cost of ferrous scrap with caution. They highlight the volatile nature of the global scrap markets – with peaks, quickly followed by significant drops.

The business climate remains tough in the United Arab Emirates. Local construction firms are unwilling to purchase more steel than they need to meet their near-term requirements. Emirati rolling mills opted to raise their selling figures to offset higher production costs.

Procurement activity in South Africa is forecast to deteriorate further, ahead of the festive holidays. Local distributors plan to persevere with conservative inventory levels in the short term.

The trading environment remains challenging in Mexico. Flat product dealers are holding off purchasing until January to see how demand develops, citing both tepid end-user consumption and the strength of the US dollar against the Mexican peso.

Source: MEPS – Developing Markets Steel Review – December Edition


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