Video Transcript
Alexandra Symeonidi
CFA, Senior Corporate Credit and Sustainability Analyst
Emerging Markets Debt Team
We’re here, in São Paul, Brazil, where we met with several companies from different industries.
The oil services industry provided an upbeat outlook due to tight supply of rigs and an expectation for increasing oil production in the country, which has led to increasing day rates.
The iron ore market is facing shifting demand dynamics as China steel demand is moving away from property into manufacturing and China steel production is expected to continue decreasing.
In the steel industry, we are seeing some price increases coming in the fourth quarter of this year for flat steel. The government has put in several anti-dumping measures and investigations for flat and long steel, which might benefit the market from next year.
In the pulp and paper industry, although we did see some price hikes, we believe prices are likely to remain at low levels due to continuous expansions in the majors in an effort to maintain market share. The sector is facing high leverage and perhaps risks for rating downgrades.
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