Dynamics of prices for steel products in emerging markets

The Brazilian metals industry is struggling to adapt to an unpredictable business environment. Distributors plan to continue their conservative purchasing strategies in November, citing price volatility and weak economic fundamentals.

Russian steelmakers are based on the prospect of a decrease in domestic steel consumption in the last quarter of 2016. Distributors and end users are reluctant to send orders for rolled steel to metallurgical enterprises, as a result of which the November benchmarks fell.

Indian brokers are optimistic that sales will increase after the festival season (October-November). However, firms only assume bookings for immediate needs, due to continuing price fluctuations. Overall sentiment over a new floor for import prices and temporary protective duties remains unchanged. These measures contributed to the latest price hikes initiated by primary steelmakers.

Business activity in Turkey remains unresolved. Local service centers are extremely reluctant to buy steel products, citing unreliable terms of trade.

Price volatility continues to impede sales growth in the United Arab Emirates. In addition, government-funded construction and infrastructure activities remain inactive. Despite this, the UAE mills decided to slightly increase their production sales figures in November, amid higher prices for basic steelmaking raw materials and lower price competition from foreign suppliers.

Mexican service centers and some buyers are forecasting additional price concessions from domestic suppliers next month.