According to MEPS latest steel report – Developing Markets’ Steel Review, the Russian steel industry remains optimistic over the prospects for consumption and production in the third quarter of 2014. Long product steelmakers have delayed releasing their August basis quotations.
Uncertainty continues to unsettle business confidence in India. The monsoon rains have been heavier than expected. Internal steel producers have resisted offering discounts and more favourable payment terms, fearing such measures would be counterproductive and only fuel further price instability.
In China, business confidence has weakened in recent weeks. Local stockists are booking for immediate requirements only, due to continuing price fluctuations and the arrival of the rainy season.
Ukrainian distributors have struggled to adapt to the unpredictable business environment. Shipments for construction and infrastructure projects remain scarce.
Turkish steelmakers have had mixed success in their efforts to advance higher transaction values to distributors. Price support from external demand is limited.
Demand for construction steel in the United Arab Emirates has been deflated by the close proximity of the summer and Ramadan periods. It has also become too risky for buyers to conclude any deals at this stage because of volatile import quotations.
Stable trading conditions are forecast in the Mexican market during the third quarter of 2014. Underlying demand is expected to be driven by shipments to the automotive and construction sectors.