Average transaction prices in the BRIC countries increased in January for all product forms researched by MEPS. The average size of the gains was approximately 3 percent. Further hikes are anticipated in February and beyond as mill input costs rise.
Brazilian steelmakers were unable to lift domestic quotations in January as difficult trading conditions persisted. Local producers have begun reviewing production targets for the first quarter due to the tightening of raw material supplies in the country.
Russian finished steel prices have been influenced by higher export prices and rising production costs. In January, discounts were lowered and distributor trade was firmer than expected. The majority of stockists opted to secure material ahead of February’s price increase.
Indian finished steel product quotations increased sharply in January. The price surge was attributed to the cost of raw materials, particularly coking coal. Output restrictions by the mills have recently tightened supply.
Chinese steelmakers successful managed to lift their January prices. The increase was mainly driven by higher input costs and the expectation of restocking activity by the distribution network. Many leading producers have elected to lift their official February ex-works figures. End-user demand, however, declined ahead of the Chinese New Year festival but is expected to pick up after the holidays.