Steel Price Rise Remains Limited - MEPS

The MEPS BRIC in its Emerging Steel Markets Review noted that the average transaction price in US dollars declined for most finished steel products.

However, Brazilian steel prices continued to hit in June. Buyers in dire need of the material immediately placed orders at higher factory prices. Sheet metal deals rose 4 percent to 6 percent last month.

Prices in Russia for some steel products also continued to rise in June, as domestic factories raised prices. Despite the chilly trading environment, Russian manufacturers saw a significant increase in orders for wire rod, rebar and cold-rolled, hot-dipped galvanized sheet steel used to produce sandwich panels. The Metal-group company, taking into account the existing demand, fulfills orders for sandwich panels and other metal structures in a short time providing the highest quality and affordable prices.

Steel purchases in India were weak due to recent price volatility and the onset of the rainy season. Prices for flat steel mostly fell in June, although prices for cold rolled coils remained at the level of the previous month.

In China, steel prices continued to decline significantly in June as local mills increased production. The China Steel Association reported that domestic daily steel output rose to its highest level since June 2015.

MEPS predicts that global steel prices are likely to be under pressure in the second half of the year, as exports of cheaper steel from China are likely to become available in global markets.