Raw materials focus

摘要

Month-on-month the Steel Raw Materials Index continues its decline, dropping 4.84points since June and 14.91 points since May. The 2.6% month-on-month decline from 185.5 points, a level which was last seen in 2010, illustrates the fragile condition of raw materials markets. The market conditions outline the lack of support prices have in the coming month and with the global decline in finished steel prices the raw materials index could post further drops in the coming months.MBR's Global Steel Price Index has also posted steady declines month-on-month as previous support from higher raw materials prices erodes with the recent declines in scrap and iron ore offers. Purchasing and steelmaking activity will remain subdued over the coming month as producers and re-rollers in the MENA region have scaled back activity during the month of Ramadan. We expect a slight uptick in input costs at the start of Q3 as buyers return to the market and begin restocking, but with weaker market conditions this will be short-lived.