Tag Archives: Russia

Trade War Speculation Unsettles Emerging Steel Markets

Brazil

Challenging business conditions persist in Brazil. Domestic buyers remark that the current initiative to lift prices is ill-timed, counterproductive and would only escalate import tonnages.

Russia

Russian trading houses are booking for only immediate requirements due to price fluctuations and working capital problems. Activity deteriorated further, once the 2018 FIFA World Cup started. Shipments to construction and infrastructure projects remain steady, but demand from the commercial and private residential building sector is weak. End-users continue to experience financial problems.

India

In India, steel distributors, operating in southern states, witnessed a fall in business activity with the early onset of the monsoon season. Buyers are reluctant to purchase finished steel material and are waiting for prices to decline. Meanwhile, the Modi government announced that it will impose retaliatory tariffs on US finished steel goods (effective August 4).

Ukraine

The prognosis for the Ukrainian steel market is unchanged. Bearish dealers prefer to wait and observe the current market situation. Buying sentiment is shaped by expectations of further price fluctuations. Exporters lifted selling figures, actioned by an upturn in the cost of billet, slab and steelmaking raw materials.

Turkey

Challenging trading conditions persist in Turkey. Deliveries to downstream steel consuming industries remain slow, amid weak post-Ramadan demand growth and political uncertainty stemming from the country’s presidential and parliamentary elections. Additionally, exporters report that the tariffs on steel, imposed by the United States, have increased the competitiveness of their finished steel products, relative to their Canadian, Mexican and European counterparts.

UAE

Emirati service centres are extremely reluctant to purchase material in, what they deem as, precarious business conditions. Shipments to the construction sector and pipe fabricators remained slow in the trading period. During the summer months, building activity is constrained by high temperatures. Export opportunities are limited outside the GCC region.

South Africa

The trading environment remains downbeat in South Africa. Distributors condemned the latest upward adjustments as “unwarranted” given the current trading climate. Construction activity in the public sector is at a standstill, at present, as the market awaits government decisions on new investments.

Mexico

Purchasing activity remains moderate in Mexico. The majority of local stockists are refraining from signing any contracts at the moment. Shipments of finished steel products to the United States have halted, this month, due to uncertainty over US trade tariffs.

Source: MEPS Developing Markets Steel Review

People also read: EU Steel Prices Slip As Purchasing Slows

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

BRIC STEEL PRICES CONTINUE TO SLIDE, IN FEBRUARY

BRIC steel prices continue to be under pressure because of weak demand, global oversupply and the recent introduction of EU trade protection measures.

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

Brazilian long product prices reduced slightly as market activity remained muted. Following the introduction of the minimum import price framework, in India, buyers are hesitant to place orders.

Russian cold-rolled sales to the European Union are likely to contract as the authorities set preliminary antidumping duties. However, local producers largely secured higher transaction prices, in February. Steel export orders rose on the back of the weak rouble.

Furthermore, domestic transaction prices for Chinese flat and long products are expected to rise in late-February as activity ramps up, especially in the construction sector, following the holidays.

Source: MEPS – Developing Markets Steel Review – February Edition

BRIC STEEL PRICES TUMBLE FURTHER, IN JANUARY

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

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

 

RUSSIAN STEEL MARKET ROUNDUP FROM MEPS

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