BRAZIL July 29 2015 8:00 PM
LONDON (Scrap Register): The outlook for the Brazilian steel industry is unchanged. Domestic steelmakers have begun to lower production targets for finished steel long products, citing overcapacity and cuts to state-funded investment projects, said MEPS International.
The business climate in the Russian steel market is unchanged. Local trading houses are extremely reluctant to purchase material in, what they deem as, tricky trading conditions.
Indian steelmakers are under pressure to slowdown the pace of their expansion programmes. Underlying demand for finished steel products has been weaker than projected, fuelling fears of overcapacity and a deteriorating pricing environment.
Arduous trading conditions persist in the Chinese steel market. Buying sentiment has been weighed down by the slowdown in construction activity and weak economic fundamentals.
Ukrainian trading houses remain hesitant about placing orders, in the backdrop of tight credit conditions and low end-user demand. The local association of metal producers, Metallurgprom, has forecast that crude steel production in August will total 2.2 million tons – up 9.8 percent compared with June’s output figure.
Business activity has been slow in the Turkish market. Price-cutting undertaken by tier-one steelmakers has only exacerbated the situation.
Traders operating in the United Arab Emirates are divided over whether the market will pick up in August. Buyers have refrained from purchasing finished steel products, expecting additional concessions. Price competition from Chinese, Indian and CIS suppliers has intensified over the period surveyed.
Mexican steelmakers are under growing pressure to downgrade their production capacity, as a result of stagnant domestic sales volumes. Meanwhile, the National Chamber of Iron and Steel Industry (CANACERO) has reported that imports of finished steel, in the January-May 2015 period, stood at 5.62 million tonnes – up 11.3 percent, compared with the same period a year ago.