TURKEY August 26 2015 4:30 PM
LONDON (Scrap Register): Russian trading houses remain cautious about the strength of domestic steel demand in the September-October period. Meanwhile, long product steelmakers have delayed releasing their September basis quotations.
Business confidence amongst Indian dealers remains unsettled. The situation has been further aggravated by the different pricing strategies adopted by primary steelmakers. Meanwhile, the import tariff rate of the flat-rolled and steel products used in the automotive industry was lifted to 12.5 percent (previously 10 percent), with long steel products now at 10 percent (previously 7.5 percent).
The outlook for Ukrainian demand is unchanged. Distributors and traders have continued to purchase only for immediate requirements. Construction firms have remained hampered by working capital constraints.
The prognosis for the Turkish steel market remains poor in August. The Turkish Statistical Institute (TUIK), has specified that imports of flat finished steel products totalled 661,246 tons in June – up 17.5 percent year-on-year. The largest increase transpired in cold rolled coil imports (a rise of 10.5 percent).
Challenging trading conditions persist in the United Arab Emirates. Local stockists remain bearish over the growth prospects for steel consumption in the third quarter. It has become too risky for buyers to conclude any deals at this stage because of volatile import quotations.
The business environment in South Africa has remained difficult. Local service centres have forecast that domestic steel sales in the third quarter would be weaker than the previous trading period. Meanwhile, the South African Iron & Steel Institute (SAISI) has stated that imports of finished carbon and alloy steel products totalled 111,150 tons in June – up 2.7 percent, month-on-month. Finished flat products accounted for 93,300 tons.
Purchasing volumes in the Mexican market are forecast to be stable, at best, in September. Local steelmakers are expected to shadow the pricing strategies of their North American counterparts next month. Meanwhile, the National Chamber of Iron and Steel Industry (CANACERO) has reported that imports of finished steel, in January-June 2015, stood at 6.83 million tons – up 14.0 percent, compared with the same period a year ago.