Tag Archives: Russian Steel Prices

STEEL PRICES RISE IN EMERGING MARKETS BUT BUYERS REMAIN CAUTIOUS

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

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