Rising Raw Material Costs Fuel Price
Growth in Emerging Steel Markets - MEPS
Brazilian distributors booked material
for only immediate requirements, this month. Despite this, domestic steelmakers
attempted to lift transaction values, in view of the upward movement witnessed
in other global steel markets and the rising cost of steelmaking raw materials.
Business sentiment remains mixed in India. The new 18 percent goods and services
tax (GST), implemented on July 1, had a negligible impact on sales volumes.
Meanwhile, exporters continued to develop positions in Southeast Asia, with
Chinese steel deemed too expensive.
Turkish steelmakers adopted more aggressive pricing positions, this month.
However, end-users remain risk averse. The majority plan to continue with
cautious purchasing strategies.
The trading environment is unchanged in the United Arab Emirates. Services
centres are booking for immediate requirements only, due to volatile import
quotations and the onset of the summer trading period. Meanwhile, domestic
re-rolling mills opted to increase their selling figures, shadowing the recent
upturn in the cost of imported semi-finished steel products.
Mexican steelmakers remain concerned about the US government’s Section 232
national security investigation. The uncertainty created has been labelled as
unwelcome, at a time when profit margins are already tight, due to the peso
devaluation and the rising cost of key steelmaking raw materials.
Source: MEPS -
Steel Review - July 2017 Edition
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