Tag Archives: MEPS Developing Markets Steel Review


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


Brazilian distributors are only booking for immediate requirements due to continuing price fluctuations and weak economic fundamentals. The conservative purchasing strategy is expected to continue for the foreseeable future.

Russian distributors remain bearish over the outlook for domestic finished steel consumption in the October-November period. End-user groups are purchasing material for immediate needs only. Meanwhile, long product steelmakers postponed releasing their basis quotations for the next trading period.

Indian steelmakers are optimistic that trading volumes will improve in the near term, supported by state-funded infrastructure projects and a series of trade protection measures – such as, new minimum import price mandates and provisional safeguard duties. Moreover, business confidence picked up, coinciding with the imminent end of the monsoon season.

The Ukrainian steel industry has struggled to adapt to the muted domestic trading environment. Local stockists report that the settlement of payments from customers remains a problem.

Turkish steel producers are divided over the prospects for domestic steel consumption in the final trimester of 2016. Flat product traders contend that the latest price initiative undertaken by local steelmakers is ill-timed, counterproductive and will only escalate import tonnages from Russia and Ukraine.

Business confidence remains downbeat in the United Arab Emirates. Local trading houses are reluctant to replenish their inventories. They are uncertain about whether industrial activity and construction work will improve in October.

The trading environment remains challenging in South Africa. Steel manufacturers are reluctant to increase production capacity in the absence of sustainable end-user demand.

The outlook for the Mexican steel market is unchanged. Local stockists plan to persevere with conservative bookings, in anticipation of price concessions from domestic suppliers.

Source: MEPS – Developing Markets Steel Review – September Edition


BRIC steel prices continue to slide because of weak demand and global oversupply.

In the recent edition of the Developing Markets’ Steel Review, MEPS report that the BRIC average transaction price, softened, in January, across flat and long products.

Russian steelmakers offered discounted prices to secure mill output, in January, although we expect transaction values to rise next month. The Brazilian steel industry is being negatively affected by the poor economic climate domestically.

Turkish selling values mainly fell because of rising imports and muted demand.

However, domestic transaction prices for Chinese flat products advanced as local producers announced price hikes early, in January. As the Lunar New Year approaches, values have weakened as domestic consumption slows down.

Source: MEPS – Developing Markets Steel Review – January Edition


Steel prices in BRIC countries have slipped by an average of around 4 percent, in December.

In the recent issue of the Developing Markets’ Steel Review, MEPS reported that market activity across the developing world has softened across flat and long products areas. Amid a weak demand outlook, buyers have put further downward pressure on domestic selling prices as sales slow down, approaching year-end.

In Brazil, domestic producers have called for higher tariffs for imported material to protect market share. Meanwhile, reduced investment activity and sluggish domestic sales continued to dominate the Russian steel scene.

Chinese steel prices keep tumbling as falling raw material costs have enabled customers to secure reductions in their local market.

Low-priced imported material has put further downward pressure on South African domestic resale prices. Meanwhile, Mexican stockists have successfully secured lower transaction values following similar price reductions in the US.

Source: MEPS – Developing Markets Steel Review – December Edition


Hot rolled coil figures, in Russia, held firm in October, according to MEPS. Transaction values continued to be underpinned by robust shipments to domestic tube and pipe fabricators.

Commodity plate traders have begun to implement winter trading protocols. Additionally, several have expressed concerns that the recent strengthening of the rouble has made the hot rolled plate segment more susceptible to low cost imports from the Ukraine and other countries.

Already sluggish sales of Russian wire rod are likely to weaken further with the approach of the seasonal slowdown in consumption. Meanwhile, stockists are currently purchasing structural sections on a requirement basis only, due to price uncertainty and the close proximity of the country’s winter trading period.

Buying sentiment for rebar has weakened. Distributors remain reluctant to carry excess inventory into the winter trading period. Material is currently being purchased just on a requirement basis as a result. Exporters have also faced a deteriorating business environment.

Source: MEPS – Developing Markets Steel Review – October Edition