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February 2017

Incorporating BRIC Country Data

Comparison of Transaction Prices (US$/metric ton)
HR Coil HR Plate CR Coil HD Galv W Rod M Sect Rebar Merc Bar
Brazil Low 692 816 778 892 627 780 664 683
Russia Low 553 526 657 670 469 621 445 520
India Low 522 506 604 649 399 436 437 440
China Low 455 411 563 602 423 398 414 401
BRIC Average Low 556 565 651 703 480 559 490 511
Ukraine Low 529 559 589 696 450 600 414 446
Turkey Low 510 525 610 690 415 475 385 445
UAE* Low 515 490 610 690 455 530 405 435
South Africa Low 675 671 770 917 631 NA 619 713
Mexico Low 650 693 871 943 550 648 585 580
D Markets Avg Low 581 567 686 768 500 584 494 533

Month on Month % Change

Brazil Low 9.8 3.0 3.0 1.1 5.2 7.3 3.3 6.9
Russia Low 4.7 7.8 5.3 -0.7 2.2 2.6 -3.7 1.4
India Low -5.1 -5.1 -1.6 0.9 -3.2 -1.4 -1.8 -2.7
China Low 1.6 3.0 1.1 1.5 5.8 7.6 6.2 3.1
BRIC Average Low 3.2 2.2 2.0 0.7 2.8 4.3 1.0 2.6
Ukraine Low 4.3 4.3 1.6 0.0 -1.5 2.6 -1.2 0.0
Turkey Low -1.9 -0.9 -1.6 0.0 -5.7 1.1 -7.2 0.0
UAE Low -1.0 3.2 1.7 1.5 0.0 -3.6 -5.8 -1.1
South Africa Low 2.1 2.0 2.0 2.0 1.9 NA 2.0 2.0
Mexico Low 3.5 8.6 4.8 2.8 4.8 8.7 3.7 9.4
D Markets Avg Low 2.3 2.9 2.1 1.1 1.0 2.8 -0.8 2.3

* Import prices
ISSN 1759-3352

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 2
Market Highlights
PROCUREMENT ACTIVITY REMAINS UNSETTLED IN EMERGING STEEL MARKETS
The MEPS BRIC average transaction price, measured
in US dollars, increased, in February, for all eight
finished steel product types incorporated in this report.
Brazilian steelmakers remain optimistic regarding
growth prospects for domestic steel consumption.
The Instituto Ao Brasil (IABr) reports that, in January,
production of finished steel totalled 1.775 million
tonnes up 10 percent compared with the previous
years figure. Meanwhile, domestic consumption grew
by 0.2 percent to 1.212 million tonnes. Flat products
sales accounted for 739,000 tonnes, the lowest figure
since April 2016.
Russian trading houses expressed reservations over
the necessity of the latest round of price hikes. The
majority stress that the initiative is unsustainable
and does not reflect real demand. End-users are
exhibiting little urgency to purchase material, even
with discounts granted.
The Indian steel market has been unsettled by pre-
budget expectations, weak market fundamentals and
volatile raw material costs. Attention is being paid to
the negotiation of coking coal and iron ore contracts.
Additionally, the Engineering Export Promotion
Council (EEPC India) expressed frustration with the
Modi governments decision to extend, by two months,
WTO compliant antidumping duties, on hot and cold
rolled coil products.
In February, Chinese steelmakers lifted their quotations
for all steel products, citing rising input costs and the
expectation of robust construction activity by the
distribution network. However, reminiscent of last
year, local traders questioned the sustainability of
the current transaction values, specifying that price
support remains limited and highlighting the issue of
rising inventory levels.
The outlook for the Ukrainian market is unchanged.
Long product steel sales fell and are unlikely to recover
until the construction season restarts. Meanwhile,
steel production at Alchevsk Iron and Steel Works,
Yenakiieve Steel, Donetsk Metallurgical Plant were
either disrupted or stopped due to raw material
shortages.
The business climate remained unsettled in Turkey,
this month. Local service centres plan to keep stocks
low in the near term and are purchasing cautiously.
Developing Markets Copyright 2017 by MEPS. No information contained in this report may be used or
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BRIC Average Flat Products
Transaction Prices, US$/metric ton
850
750
650
550
450
350
250
2/15 6/15 10/15 2/16 6/16 10/16 2/17
HR Coil HR Plate
CR Coil HD Galv Coil
Construction demand is lower than anticipated. Flat
product buyers are reluctant to take positions, amid
changeable domestic and foreign quotations.
Price volatility unsettled buying activity in the United
Arab Emirates, this month. Local traders are extremely
reluctant to purchase material in, what they deem as,
precarious trading conditions. Several firms plan to
observe the global reaction to the re-opening of the
Chinese market. In early trading, Emirati rolling mills
opted to lower their selling figures.
South African distributors are scrutinising the new
pricing scheme agreed by the Department of Trade
and Industry (DTI) and ArcelorMittal South Africa
(AMSA). The framework includes an import parity
mechanism and a local price for flat steel products.
Questions have arisen over the timing of the
settlement. Notably, the government recently ruled
that all finished steel products, utilised in public sector
construction projects, be sourced from domestic
producers, effective February 1.
Buying sentiment in Mexico remained downbeat, in
February. Local service centres plan to persevere with
conservative procurement strategies. The National
Chamber of Iron and Steel Industry (CANACERO)
continued to press the government to introduce more
strict import rules and increased antidumping duties.
February 2017
 3

Flat Products
Hot Rolled Coil
Brazilian trading companies are in no hurry to replenish
stocks. Inventories remain high. A substantial amount of
material was booked in December. Purchase volumes
at the new transaction prices are limited, as a result.
Russian trading houses report that underlying
demand was stronger than forecasted, over the period
surveyed. Most firms expected to witness modest
sales volumes. Moreover, Kazakhstans ArcelorMittal
Temirtau has re-entered this market, offering low-cost
hot rolled products, owing to the deteriorating situation
in Iran.
Indian stockists conveyed disappointment over
the governments decision to extend, for two more
months, the provisional antidumping duty on hot rolled
coil products. The customs tariff is on material from
China, Japan, South Korea and Russia. Meanwhile,
SAIL offered a rebate of Rs1500-2000 per tonne on
hot rolled coil and other finished flat products, for
February deliveries. The MEPS BRIC average hot
rolled coil transaction value stands at US$556 per
tonne (up 3.2 percent, month-on-month).
Ukrainian stockists have attributed the downturn in
shipments to pipe fabricators to Metinvests ambitious
hot rolled coil pricing position. The reduction in export
prices has yet to materialise in the domestic market.
Effective transaction values were unchanged in
South Africa. Distributors voiced strong opposition
to ArcelorMittal South Africas lobbying activity, for
higher levels of tariff protection, on both primary
and value-added steel products. The majority also
expressed concern over the steelmakers application
for additional safeguard duties on hot and cold rolled
coil products. Mexican stockists plan to minimise spot
market procurement because contract prices are at
reduced levels. End-user demand remained subdued,
this month.

Flat Rolled Products - Transaction Prices

price/metric ton Brazil Russia India Ukraine Turkey UAE* S Africa Mexico
(R$) (RUB) (Rs) (UAH) (US$) (US$) (R) (MEX$)
High 2311 35169 37041 14513 530 535 9461 14113
Hot Rolled Coil
Low 2161 32938 35100 14263 510 515 9014 13413
High 2649 34445 35300 15750 550 550 9329 14647
Hot Rolled Plate
Low 2549 31356 34000 15075 525 490 8970 14297
High 2680 40200 41957 16170 645 630 10648 18269
Cold Rolled Coil
Low 2430 39162 40600 15878 610 610 10288 17969

Hot Dipped High 2915 43160 47466 19588 710 710 12615 19742
Galvanised Coil Low 2787 39907 43650 18753 690 690 12255 19442

Month on Month % Change

Hot Rolled Coil Low 6.5 3.2 -6.0 5.7 -1.9 -1.0 0.0 -0.1
Hot Rolled Plate Low 0.0 6.3 -6.1 5.6 -0.9 3.2 0.0 4.7
Cold Rolled Coil Low 0.0 3.7 -2.6 2.8 -1.6 1.7 0.0 1.1
HD Galv Coil Low -1.9 -2.3 0.0 1.1 0.0 1.5 0.0 -1.0

Product Definitions
Hot Rolled Coil - 2-3mm thickness, width over 1.1 metres.
Hot Rolled Plate - 15-40mm thickness, width over 2.0 metres - except China width less than 2.0 metres.
Cold Rolled Coil - 1mm thickness, width over 1.3 metres - except India 0.8mm thickness.
Hot Dipped Galvanised Coil - 1mm thickness, width over 1.1 metres, standard coating - except India 0.63-0.8mm, Russia
1.0-1.4mm and Ukraine 1.0-1.5mm thickness.

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 4

Hot Rolled Plate

Ukraine Flat Products
Transaction Prices, UAH/metric ton
Business conditions remain unfavourable in Brazil.
Local stockists are hesitant about placing forward 22000
orders. Domestic tube and pipe fabricators are finding
the new figures impractical. Russian hot rolled plate 19000
mills issued higher transaction values, this month. The
upturn coincides with the news that pipe fabricators 16000
intend to maintain or expand their production utilisation
rates, in the first quarter. 13000

Negative price sentiment persists in India. SAIL and

10000
JSW Steel are now offering plate material at near
identical figures, owing to subdued domestic demand
7000
and high inventory levels. Meanwhile, stockists report
that discounts were offered to attract business. The
MEPS BRIC average hot rolled plate transaction value 4000
2/15 6/15 10/15 2/16 6/16 10/16 2/17
for February is US$565 per tonne (up 2.2 percent,
month-on-month). HR Coil HR Plate
CR Coil HD Galv Coil
The Ukrainian domestic steel market continues to be
lacklustre. Current quotes are too high for many market
participants. The situation has been further aggravated pricing positions adopted by domestic suppliers are
by deteriorating economic fundamentals and political ambitious. Firms operating in the Urals, report that
unrest. Buyer interest remains weak in Turkey. Local low-cost coil from Kazakhstan, is readily available.
traders fear that the latest price increases will be rolled However, Ukrainian import penetration remains low.
back amid weak end-user demand. They contend that On the production front, CherMK intends to conduct
the upward movement has been speculative and is maintenance work on its cold rolled facility, next month.
not supported by market fundamentals.
Indian distributors report that shipments to key
Emirati service centres are extremely reluctant to consuming industries are forecast to recover gradually
purchase material in, what they deem as, precarious this year. Additionally, these firms have criticised the
trading conditions. Several firms plan to observe extension of the antidumping duty on cold rolled coil,
the global reaction to the re-opening of the Chinese highlighting that production levels already exceed
market. Mexican stockists are hesitant about placing the requirements of the domestic market. MEPS
forward orders. The weakness of the national currency BRIC average selling value for cold rolled material, in
dampened interest in spot market purchases, this month. February, stands at US$651 per tonne.

Cold Rolled Coil Turkish traders purchased material only on a

requirement basis, this month. The downward
Russian trading houses are divided over the segments movement in CIS flat product import quotations made
price outlook. The majority contend that the latest buying too risky for the completion of any deals, at

Flat Products Transaction Price Forecasts - Middle East (US$/metric ton)

Based on low values

Actual Forecast

Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

Hot Rolled Coil 515 525 535 515 495 485 475

Hot Rolled Plate 490 510 520 500 480 470 460

Cold Rolled Coil 610 620 625 605 585 570 560

HD Galv Coil 690 700 705 685 665 655 645

771 767 773 780 787 785 778

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 5

Local stockists, purchasing coil on a spot basis,

Currency Exchange Rates
expressed frustration that their domestic suppliers
US dollars (US$) had continued to shadow developments in the US
market. The quarterly contract price for cold rolled
4-Jan 2-Feb
coil, in the first trimester of 2017, stood at US$820 per
Brazil R$ 3.220 3.125 tonne (down 8.1 percent, quarter-on-quarter).
Russia RUB 60.48 59.59
Hot Dipped Galvanised Coil
India Rs 67.90 67.21

Ukraine UAH 26.65 26.95 The Brazilian market is quiet, as producers wait
for the start of the construction season. Russian
Turkey TL 3.578 3.738 domestic demand is weak with few transactions being
UAE AED 3.673 3.673 concluded. This trend is forecast to persist in February
and March. Several domestic galvanised producers
South Africa R 13.63 13.36 have scheduled maintenance work in this period, as
Mexico MEX$ 21.40 20.62 a result. In February, distributor trade in India has
been unsettled by pre-budget expectations and weak
China RMB 6.942 6.880
market fundamentals. Chinese traders predict stable
Eurozone 0.954 0.926 buying activity in March. The MEPS BRIC average hot
dipped galvanised coil selling figure increased by 0.7
percent to US$703 per tonne, this month.
this stage. The outlook for steel procurement in the
United Arab Emirates is unchanged. Service centres The steel market remains quiet in Ukraine. Domestic
are reluctant to take positions, amid volatile import producers are waiting for the start of the countrys
quotations. construction season. The business environment is
unchanged in Turkey and the United Arab Emirates.
South African domestic selling figures were stable South African stockists expressed reservations over
during the period under review. The International Trade the new pricing formulae. Under the framework, the
Administration of South Africa (ITAC) is deliberating local price for flat steel products will be based on
on whether a case exists for introducing further a weighted basket of imports, which includes the
safeguard duties on cold rolled coil products. The European Union, Asia and the North America Free
outlook for the Mexican steel market is unchanged. Trade Agreement.

Export/Import Prices - Flat Products (US$/metric ton)

Export (FOB) Import (CFR)
CIS CIS
Black Far China Turkey Brazil India Turkey UAE S Africa Mexico
Sea East
High 485 505 510 525 560 560 495 535 540 600
Hot Rolled Coil
Low 460 480 500 490 550 530 480 515 530 590
High 485 500 475 - 525 495 520 550 510 -
Hot Rolled Plate
Low 465 480 465 - 515 490 500 490 495 -

High 560 580 595 - 645 615 580 630 625 730
Cold Rolled Coil
Low 550 565 580 - 630 585 570 610 610 700

Hot Dipped High - - 645 - 695 - - 710 675 -

Galvanised Coil Low - - 635 - 685 - - 690 665 -

Month on Month % Change

Hot Rolled Coil Low -6.1 -5.0 0.0 -3.9 0.0 -0.9 -5.0 -1.0 0.0 0.0

Hot Rolled Plate Low -1.1 -1.0 1.1 - 0.0 2.1 3.1 3.2 0.0 -
Cold Rolled Coil Low -2.7 -2.6 0.9 - 0.0 0.0 0.0 1.7 0.8 0.0
HD Galv Coil Low - - 0.0 - 0.0 - - 1.5 0.0 -

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Steel Review reproduced in any manner whatsoever without written permission from the publisher.
 6

Long Products
Wire Rod
Brazilian distributors continued to purchase material
cautiously, asserting that the pricing positions
adopted by their domestic suppliers are not justified.
Russian merchants report that wire rod consumption
was stable, this month. Speculative demand is
expected to resume after the winter season ends in
mid-April.
Ukrainian stockists expressed apprehension that
sales volumes to construction companies will remain
subdued, next month. Several firms are hopeful that
the downturn in global wire rod prices will induce
domestic producers to offer additional concessions for
the product. Turkish stockists intend to carry minimum
inventories in these uncertain times. In early February,
internal steel producers struggled to impose higher
selling quotations on their domestic customers.

Indian majors are now concentrating on winning
compulsory local purchases from public sector
undertakings. These deals are lucrative and will
improve fourth quarter balance sheets. Meanwhile,
RINL rolled over its wire rod quotations for PC115
and EQ grades, despite the fluctuations in the cost
of domestic square billet and ferrous scrap material.
Imports are available but are uncompetitive. The
MEPS BRIC average wire rod transaction figure, for
February, stands at US$480 per tonne.
The outlook for the Emirati segment is more positive
compared with January. Meanwhile, Chinese
suppliers have been slow to return to the marketplace.
South African traders are predicting that underlying
demand for wire rod and other long products will
remain subdued in 2017, citing a lack of state-
funded infrastructure expenditure. However, export
markets are expected to be more resilient this year.
Procurement tonnages in Mexico remain scarce.
Local distributors contend that any additional price

Long Products - Transaction Prices

price/metric ton Brazil Russia India Ukraine Turkey UAE* S Africa Mexico
(R$) (RUB) (Rs) (UAH) (US$) (US$) (R) (MEX$)

High 2180 28644 29100 12467 440 480 8672 11641

Wire Rod
Low 1960 27945 26800 12128 415 455 8431 11341

Medium High 2628 37680 31400 17103 500 550 NA 13769

Sections Low 2438 37025 29300 16158 475 530 NA 13369
High 2336 29136 30000 11467 425 435 8593 12463
Reinforcing Bar
Low 2076 26525 29400 11167 385 405 8272 12063

High 2385 32025 30100 13725 460 450 9713 12369

Merchant Bar
Low 2135 31015 29600 12020 445 435 9522 11969

Month on Month % Change

Wire Rod Low 2.2 0.6 -4.3 -0.3 -5.7 0.0 0.0 0.9

M Sect Low 4.1 1.2 -2.3 3.6 1.1 -3.6 NA 4.9

Reinforcing Bar Low 0.3 -5.1 -2.6 0.0 -7.2 -5.8 0.0 0.0

Merchant Bar Low 3.8 0.0 -3.6 1.1 0.0 -1.1 0.0 5.5

Product Definitions
Wire Rod (Mesh Quality) - 8-12mm diameter - except China 6.5mm.
Medium Sections and Beams - 240 x 240mm H-beam - except China 300 x 300mm and Turkey IPE-NPI (220-250mm).
Reinforcing Bar (Deformed) - 16-20mm diameter.
Merchant Bar - 50 x 50 x 6mm equal angle - except Ukraine 50 x 50 x 3-5mm and Turkey 50 x 50 x 5mm.

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 7

growth would be counterproductive and stifle the

limited buying interest that exists. Ukraine Long Products
Transaction Prices, UAH/metric ton

Medium Sections and Beams 19000

Brazilian distributors report that their sales volumes 16000

are inconsistent and, with prices continuing to move
up, they are only buying for short-term requirements.
Russian trading houses noted that underlying demand 13000
for medium sections and beams has underperformed
industry projections.
10000

The outlook for the Indian market is unchanged.

Februarys price settlements were predominantly 7000
shaped by the cost of steelmaking inputs particularly,
ferrous scrap, DRI and pig iron. The MEPS BRIC
average benchmark value for structural shapes, 4000
2/15 6/15 10/15 2/16 6/16 10/16 2/17
in February, is US$559 per tonne (up 4.3 percent,
month-on-month). Wire Rod Medium Sections
Rebar Merchant Bar
The trading environment in the Ukrainian market
is unchanged. Service centres report that very little
business was conducted over the period surveyed. will be implemented when production recommences.
Turkish steelmakers struggled to recoup their losses,
sustained in early trading, this month. However, Reinforcing Bar
prudent distributors plan to minimise inventory
and purchase material on a requirement basis, in Brazilian distributors, with no affiliation to a local
the interim. Stockists operating in the United Arab steelmaker, continue to complain that their mill-tied
Emirates are divided over whether shipments of counterparts enjoy more favourable purchasing terms.
medium sections and beams to the construction and Stock levels are higher than normal. Material was
infrastructure sectors will improve in 2017. The price booked in December, in anticipation of last months
premium for domestically manufactured finished steel price hike. Russian trading houses prefer to wait and
products over non-GCC material widened to US$53 assess the market direction because they find current
per tonne, this month. offers unworkable. Moreover, the segment remains
imbalanced. Supply continues to exceed domestic
In South Africa, Evraz Highveld has taken steps to demand, stoking fears that local rebar producers will
recommission its heavy structural mill. AMSA will start to offer more generous concessions, in order to
supply blooms and slabs, primarily from Newcastle fill their order books.
and Vanderbijlpark, for processing into heavy structural
products. Last month, the ITAC approved a 10 percent Indian traders operating in the central and western
base protection for medium sections and beams, which states are predicting that underlying demand will begin

Long Products Transaction Price Forecasts - Middle East (US$/metric ton)

Based on low values

Actual Forecast

Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

Wire Rod 455 465 475 475 460 445 445

Medium Sections 530 545 555 565 555 540 540

Reinforcing Bar 405 420 430 440 430 420 420

Merchant Bar 435 450 460 470 460 445 445

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 8

to improve in late February. Traditionally, construction
activity picks up in this period, as project completion
is usually expedited before the end of the current
financial year. The MEPS BRIC average reinforcing
bar transaction value is US$490 per tonne up 1.0
percent, month-on-month.
Ukrainian stockists remarked that they are in
possession of sufficient inventory to cover their
customers requirements, until the start of the
construction season. Mill utilisation rates currently
exceed market requirements. Business sentiment
failed to improve in Turkey, this month. Stockists are
anticipating a steel price increase in spring, initiated
by the current uptrend in ferrous scrap prices.
Market sentiment softened in the United Arab
Emirates. Buyers have taken up more cautious wait
and see positions. In early trading, Emirates Steel
Industries (ESI) and Conares Metal Supply lowered
their quotations, shadowing the price adjustments of
their Turkish competitors. The premium for domestic
reinforcing bar over non-GCC material narrowed
to US$55 per tonne, as a result. Difficult trading
conditions persist in South Africa. Distributor and end-
user business has slowed down.
Merchant Bar
Brazilian distributors and traders continued to
purchase material on a requirement only basis.
Purchasing volumes, traditionally, pick up in mid-
February. Buying activity in Russia was weaker than
forecast. Several trading houses did not purchase,
because they had carried high inventory levels over
the winter trading period.
Indian stockists are finding it difficult to liquidate existing
inventories. Chinese steelmakers released higher
quotations for merchant bar and all other long products
after the Lunar New Year festival ended. The MEPS
BRIC average price for merchant bar, in February, is
US$511 per tonne (up 2.6 percent, month-on-month).
Market sentiment in Ukraine was stable, this month.
Distributor trade remains subdued. Turkish service
centres are undecided about whether to rebuild
stocks or wait for the market to settle. Difficult trading
conditions persist in the United Arab Emirates.
Meanwhile, GCC re-rolling mills are under pressure
to issue lower selling positions, amid generous
discounting by Turkish suppliers. Non-GCC steel
products that do not require further processing, are
subject to a 5 percent import duty.
Turkish traders uphold that the domestic mills exploited
the mid-Februarys raw material cost increase. Delivery
lead times remain unchanged. Purchasing volumes in
South Africa are forecast to be stable, at best, in March.
Mexican dealers expect their domestic suppliers to
shadow the pricing strategies of their US counterparts
in the next trading period. Further upward movement
has not been ruled out. Producers intend to transfer the
incremental cost of production to end-users.

Export/Import Prices - Long Products (US$/metric ton)

Export (FOB) Import (CFR)
CIS CIS
Black Far China Turkey Brazil India Turkey UAE S Africa Mexico
Sea East
High 450 450 460 460 505 450 - 480 485 485
Wire Rod
Low 415 425 445 435 500 440 - 455 475 470
High - - 435 - 485 - - 550 470 -
Medium Sections
Low - - 425 - 475 - - 530 460 -

High 450 450 450 445 495 - - 435 475 500

Reinforcing Bar
Low 390 415 435 425 485 - - 405 465 470
High - - 450 460 490 - - 450 480 -
Merchant Bar
Low - - 405 450 455 - - 435 435 -

Month on Month % Change

Wire Rod Low -4.6 -2.3 1.1 0.0 2.0 2.3 - 0.0 1.1 1.1

M Sect Low - - 0.0 - 0.0 - - -3.6 0.0 -

Reinforcing Bar Low -8.2 -1.2 0.0 2.4 0.0 - - -5.8 0.0 1.1
Merchant Bar Low - - -2.4 0.0 -2.2 - - -1.1 -2.2 -

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 9

Regional Average Transaction Prices (US$/metric ton)

BRIC Latin America CIS Middle East

Last This Last This Last This Last This
Month Month Month Month Month Month Month Month
High 581 589 684 712 558 565 545 535
Hot Rolled Coil
Low 539 556 629 671 518 541 520 515

High 583 595 739 779 557 581 530 550

Hot Rolled Plate
Low 553 565 715 755 512 543 475 490

High 678 685 839 872 627 638 620 630

Cold Rolled Coil
Low 638 651 793 825 602 623 600 610

Hot Dipped High 748 747 918 945 728 726 700 710
Galvanised Coil Low 698 703 900 918 686 683 680 690

High 497 513 602 632 470 472 480 480

Wire Rod
Low 467 480 561 589 458 460 455 455
Medium Sections High 564 589 700 755 624 634 570 550
and Beams Low 536 559 662 714 595 611 550 530
High 518 528 653 676 456 457 445 435
Reinforcing Bar
Low 485 490 604 625 441 430 430 405
High 527 541 633 682 520 523 465 450
Merchant Bar
Low 498 511 585 632 480 483 440 435

BRIC average prices are derived from an arithmetic average of the transaction values identified in Brazil, Russia, India and China.
Latin America average prices are derived from an arithmetic average of the transaction values identified in Brazil and Mexico.
CIS average prices are derived from an arithmetic average of the transaction values identified in Russia and Ukraine. Middle
East average prices are derived from the transaction values identified in UAE. All prices are collected in national currencies and
converted into US dollars using currency exchange rates effective at the start of each month to provide a basis for comparison.

Regional Average Transaction Price Indices

BRIC Latin America CIS Middle East

Last This Last This Last This Last This
Month Month Month Month Month Month Month Month
Hot Rolled Coil 91.8 94.7 85.2 90.9 135.2 141.3 121.8 120.7

Hot Rolled Plate 80.0 81.8 72.2 76.3 101.0 107.1 79.6 82.1

Cold Rolled Coil 95.9 97.9 97.2 101.1 118.5 122.6 120.5 122.5

HD Galv Coil 83.5 84.1 87.6 89.4 91.6 91.2 112.0 113.6

Wire Rod 93.8 96.4 87.9 92.3 138.8 139.4 94.8 94.8

Medium Sections 80.4 83.8 87.5 94.3 89.1 91.5 91.7 88.3

Reinforcing Bar 97.0 98.0 107.5 111.2 130.5 127.2 92.4 87.1

Merchant Bar 94.5 97.0 84.3 91.1 139.9 140.8 84.6 83.7
Price indices are calculated using the low figures in the above table - January 2009=100.

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Steel Review reproduced in any manner whatsoever without written permission from the publisher.
 10

World/Regional Average Transaction Prices (US$/metric ton)

World EU North America Asia

Last This Last This Last This Last This
Month Month Month Month Month Month Month Month
High 654 671 630 656 770 773 561 585
Hot Rolled Coil
Low 608 624 593 618 711 714 519 541

High 638 682 638 676 716 797 561 574

Hot Rolled Plate
Low 591 634 594 631 657 738 521 532

High 784 802 741 771 964 958 647 676

Cold Rolled Coil
Low 735 752 697 725 896 890 612 641

Hot Dipped High 872 909 810 876 1074 1069 733 782
Galvanised Coil Low 821 857 765 830 1015 1010 684 731

High 524 541 490 508 590 600 493 516

Wire Rod
Low 482 498 464 482 520 530 461 483

Medium Sections High 678 696 658 673 802 804 575 610
and Beams Low 633 650 612 625 739 741 549 583

High 512 527 475 484 605 617 457 481

Reinforcing Bar
Low 483 498 457 465 563 575 430 453

High 594 617 550 566 684 714 548 571

Merchant Bar
Low 565 588 520 535 655 685 521 543

World prices are computed from an arithmetic average of the low transaction values identified in three regions (EU, Asia and North
America). EU prices are computed from a weighted average (based on consumption) of the low transaction values identified in
Germany, France, Italy, UK and Spain. North America prices are computed from a weighted average of the low transaction values
identified in USA and Canada. Asia prices are computed from an arithmetic average of the low transaction values identified in
Japan, Taiwan, South Korea and China. All prices are collected in national currencies and converted into US dollars using currency
exchange rates effective at the start of each month to provide a basis for comparison. Individual product price forecasts are
available. Please visit http://www.meps.co.uk/world-price.htm.

World/Regional Average Transaction Price Indices

World EU North America Asia

Last This Last This Last This Last This
Month Month Month Month Month Month Month Month
Hot Rolled Coil 172.7 177.3 183.0 190.7 177.8 178.5 156.8 163.4
Hot Rolled Plate 150.4 161.3 166.4 176.8 144.4 162.2 142.0 145.0
Cold Rolled Coil 154.7 158.3 154.2 160.4 174.0 172.8 133.3 139.7
HD Galv Coil 141.6 147.8 133.7 145.1 170.0 169.2 119.8 128.0
Wire Rod 155.5 160.6 157.8 163.9 167.7 171.0 141.0 147.7
Medium Sections 147.6 151.5 141.3 144.3 168.0 168.4 132.9 141.2
Reinforcing Bar 158.4 163.3 162.1 164.9 170.6 174.2 141.9 149.5
Merchant Bar 168.7 175.5 162.5 167.2 204.7 214.1 142.7 148.8

Price indices are calculated using the low figures in the above table - January 1997=100. Please note, EU price indices in this table
are calculated using US dollar values and will differ from the euro figures listed on our website.

Developing Markets Copyright 2017 by MEPS. No information contained in this report may be used or February 2017
Steel Review reproduced in any manner whatsoever without written permission from the publisher.
 11

Transaction Price Indices (based on local currency per metric ton values)

Brazil Russia India China Ukraine Turkey UAE S Africa Mexico

Hot Rolled Coil 110.8 247.0 124.9 95.8 474.6 259.3 120.7 152.4 161.6

Hot Rolled Plate 100.8 188.1 103.8 90.9 354.7 163.8 82.1 112.7 119.1

Cold Rolled Coil 113.0 225.7 133.5 107.9 389.5 285.4 122.5 152.4 195.0

HD Galv Coil 96.1 148.6 138.6 111.3 332.0 248.5 113.6 163.8 186.3

Wire Rod 140.0 291.1 88.0 97.5 387.6 233.9 94.8 136.3 126.7

Medium Sections 135.4 165.6 91.0 82.7 293.8 169.8 88.3 NA 137.3

Reinforcing Bar 148.3 281.3 99.3 88.5 336.4 212.6 87.1 140.2 175.8

Merchant Bar 137.7 274.5 101.2 88.5 418.1 207.4 83.7 154.9 125.1

Price indices are calculated using the low figures in the transaction price tables - January 2009=100.

The March issue of MEPS Developing Markets Steel Review will be dispatched on:
28 March, 2017.

Transaction Price Definitions

Transaction values relate to those agreed by steelmakers and service centres for prime material in the specified steel
products. Prices are for regular business between customers and their local steel mills, negotiated during the current
month for delivery in the future. *The exception is United Arab Emirates where figures relate to import prices cfr, local port.

Transaction prices include extras for size and coating, where applicable, for the lowest priced grade of steel - sold ex-
works/ex-mill. Additional extras for processing, packaging, testing and inspection are excluded. Delivery charges and local
taxes are not included in the quoted prices. Contract deals arranged in the domestic market, or deals for lots of imported
steel, are specifically excluded from our price evaluation.

All price and market data is researched by MEPS staff and its local correspondents. High and low values are provided
to reflect the range of prices in the market between major and minor customers. Research is conducted during the early
weeks of each month. Changes in the latter part of the month would be incorporated in the next issue.

Please note the transaction references in the different geographic areas:-

Russia - Flat Products - Volga region
Russia - Long Products - Volga & North Caucasus
Ukraine - Long Products - Dnepropetrovsk
India - Flat Products - Delhi
India - Long Products - Mumbai
China - Spot transactions between the mills and first tier distributors across the main consuming regions.

The data contained in this newsletter has been obtained from respondents who we consider provide accurate intelligence
on the steel market. We make our best endeavours to be assured that the information is correct and that our analysis is
reliable. MEPS (International) Ltd cannot be made liable for any loss resulting from the use of our published data, however
it may arise.

Developing Markets Copyright 2017 by MEPS. No information contained in this report may be used or February 2017
Steel Review reproduced in any manner whatsoever without written permission from the publisher.
 12

MEPS Publications

World Steel Outlook to 2020 (Quarterly)

One-year and five-year forecasts for crude steel, pig iron and DRI production for all main producing
countries/regions. Also included is detailed statistics for finished steel production for the ten main rolled
steel products (Hot Rolled Coil, Hot Rolled Plate, Cold Rolled Coil, Metal Coated Sheet, Electrical Sheet,
Tinplate, Wire Rod, Sections and Beams, Rebar and Merchant Bar) in the EU, China, India, Japan,
South Korea, Taiwan, Brazil and the US. From trade data we are also able to prepare estimates for
apparent consumption.

The report briefly comprises of:

Steel Market Overview
Economic Overview (Including GDP forecasts)
Iron and Steel Production (Short and long-term forecasts for crude steel, pig iron and DRI)
Finished Steel Production, Trade and Consumption
Regional Steel Price (Charts)
Historical Data Tables

International Steel Review (monthly) Stainless Steel Review (monthly)

Each edition carries domestic This publication provides
steel pricing data in eleven stainless steel price and market
countries across the globe, information for hot rolled plate,
including - United States, hot rolled coil, cold rolled coil,
Canada, China, Japan, South plus drawn and peeled bar. Two
Korea, Taiwan, Poland, austenitic and ferritic grades are
Czech/Slovak Republics and assessed in thirteen countries
the main five EU member around the world covering 65%
states - covering 70 percent of of global consumption. Countries
world consumption. Details of include Germany, France, Italy,
World and Regional Average UK, Spain, Sweden, Netherlands,
Steel Prices are incorporated Denmark, USA, Japan, China,
together with regular forecasts. South Korea and Taiwan. Details
of basis price negotiations and
alloy surcharge values, where
applicable, are incorporated.

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Developing Markets Copyright 2017 by MEPS. No information contained in this report may be used or February 2017
Steel Review reproduced in any manner whatsoever without written permission from the publisher.