Tag Archives: INDIA STEEL

Uncertainty Dampens Trading Activity in Emerging Steel Markets

Difficult trading conditions persist in Brazil. Buyers started to push for lower prices, in view of the downward movement being witnessed in other global steel markets.

Russian steelmakers are under pressure to lower plant utilisation rates to support transaction values. Market fundamentals remain weak. Local trading houses are booking for only immediate requirements due to price fluctuations and working capital problems. Shipments to tube fabricators, OEMs and mechanical engineering companies continue to underperform expectations.

Business sentiment deteriorated in India. Stockists operating in states, adjacent to the Bay of Bengal, witnessed a fall in business activity with the onset of the monsoon season. Meanwhile, steel manufacturers hoped that steady pricing, in July, will persuade customers to place orders rather than postponing purchasing decisions.

The Ukrainian market is slow ahead of the summer vacations. Order intake at the mills is very subdued, with few deals being concluded. Transaction figures fell as producers became eager to book business.

Procurement activity in Turkey is forecast to pick up after the holiday period. However, cautious service centres are booking for only immediate requirements, in anticipation that the revival will be short-lived. The third quarter is usually a slow season for the local steel industry

The United Arab Emirates market is very quiet, with no business activity of any significance taking place during the holy month of Ramadan. Domestic producers continually speak of higher prices but they are flexible when there is business to place.

Source: MEPS – Developing Markets Steel Review – June 2017 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