UNITED KINGDOM December 21 2016 5:16 PM
LONDON (Scrap Register): Brazilian stockists remain adamant that any move by domestic suppliers to pursue price growth would be counterproductive and stifle what little buying interest exists. Most consignments are small bundles. Strict lending conditions and shrinking credit facilities are negatively affecting trade, according to MEPS.
The outlook for demand in the Russian Federation is unchanged. Underlying consumption for finished steel products fell short of industry projections – particularly, from construction firms and pipe fabricators. The situation has been exacerbated by the aggressive pricing positions adopted by domestic steelmakers. Despite this, distributors plans to persevere with conservative inventory levels over the winter trading period.
Activity remained subdued, in India, in early December. Traders intend to tightly control inventory levels due to limited buying activity. Construction firms continue to be hampered by working capital problems – a consequence of the government’s currency demonetisation policy. However, this has not deterred local producers from lifting their domestic finished steel offers. Third country imports are in short supply.
Purchasing activity continues to be limited in Ukraine. Distributors report that trading remains light for both the number of bookings and volumes transacted. Tight lending conditions have squeezed investment in construction and infrastructure projects.
The Turkish finished steel market shows no signs of a substantial improvement amid weak demand. Producers, operating EAF steelmaking facilities, responded to the escalating cost of ferrous scrap with caution. They highlight the volatile nature of the global scrap markets – with peaks, quickly followed by significant drops.
The business climate remains tough in the United Arab Emirates. Local construction firms are unwilling to purchase more steel than they need to meet their near-term requirements. Emirati rolling mills opted to raise their selling figures to offset higher production costs.
Procurement activity in South Africa is forecast to deteriorate further, ahead of the festive holidays. Local distributors plan to persevere with conservative inventory levels in the short term.
The trading environment remains challenging in Mexico. Flat product dealers are holding off purchasing until January to see how demand develops, citing both tepid end-user consumption and the strength of the US dollar against the Mexican peso.