STEEL NEWS

TRANSACTION VALUES REMAIN UNDER PRESSURE IN THE EMERGING STEEL MARKETS

Purchasing activity has begun to exhibit signs of stagnation in Russia – particularly, from construction firms and pipe fabricators. Local steelmakers are expected to revise their planned production targets downwards if business remains subdued. Trading houses fear that future steel prices could be trapped in narrow ranges.

Shipments to Ukrainian industrial companies in April were weaker than forecast, particularly to tube and pipe fabricators, as well as light vehicle manufacturers. New capital intensive infrastructure projects have continued to be impeded by funding and planning issues. 

Negative price expectations in Turkey gained momentum in weeks 15 and 16, fuelled by weak distributor trade and the availability of low-priced CIS material. Local steel producers are wary of offering additional discounts and more favourable payment terms

Difficult trading conditions persist in the United Arab Emirates. Local stockists plan to persevere with tightly controlled inventories. Current import quotation levels have made it too risky for buyers to conclude any deals at this stage. Emirati re-rollers remain frustrated that the 5 percent import duty has not been raised.