The average increase of BRIC nation steel prices, published by MEPS (International) Ltd, was 4.2 percent in February. The main driver for this was the large hikes witnessed in Russia.
Brazilian producers are expected to begin raising effective prices of finished steel products in March and April. This will be in the form of lower discounts. Distributor trade remains weak. Several steelworks are operating at reduced capacities to conserve raw material stocks. Rising import values are deterring end-users from placing bookings.
In Russia, the upward trend in selling figures is expected to continue next month. Local steelmakers remain committed to aligning domestic flat product offers with export quotations. Indian steel product quotations rose sharply in February. Increases in domestic selling values have been attributed to successive hikes in raw material costs.
Chinese steelmakers released higher quotations for all steel products after the Lunar New Year festival ended. The new figures reflect increased input costs and the expectation of re-stocking activity by the distribution network. However, dealer prices for some flat products started to decrease in mid-month as market confidence waned