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.
