Average transaction prices, measured in US dollars, increased in November for all eight finished steel product types published by MEPS. This occurred despite lacklustre demand in many of the countries researched. An upturn in the cost of raw materials was the main driver behind these advances.
Brazilian steelmakers hiked steel prices, citing the rising cost of iron ore and metallurgical coking coal. However, industrial manufacturers strongly criticised the mills’ actions.
Russian transaction values, on the whole, moved upwards, over the last four weeks. Nevertheless, local distributors were wary of holding too much inventory in the approaching winter trading period. The downtrend in domestic consumption is expected to gather momentum, in December.
Indian transaction values slipped, due to currency exchange rate movements. There remained no substantial improvement in demand, in November. Sales fell after the government’s currency demonetisation policy announcement.
Chinese selling figures surged, in November, due to a rally in futures markets and speculation about capacity cuts. Soaring raw material expenditure, for blast furnace producers, is supporting the escalation of domestic transaction values.
Steel Prices in Turkey have risen significantly, since the end of October. Despite this, distributors continued to purchase cautiously. The trading environment remains challenging in Ukraine, Mexico and the UAE. Sales volumes are expected to soften in the short term.
