Steel futures traded around CNY 4,300 a tonne, the lowest since February 2020 as production in China is set to resume after restrictions imposed much of the year while domestic demand for the metal remains weak. China’s steel mills are expected to resume production as some companies completed crude steel output reduction targets. Chinese demand, however, continues to struggle from both the construction industry and carmakers amid ongoing stress in the property market and chip shortages. ArcelorMittal SA, the biggest steelmaker outside China, estimates Chinese demand to contract slightly this year while demand outside China is projected to rise 12-13% as economies continue to recover from the health crisis. In the US, President Joe Biden's Infrastructure Bill includes funds to be spent over eight years for infrastructures such as bridges, ports and roads while the European steel industry’s low-carbon transformation will likely attract large automakers and electronic producers.
Historically, Steel reached an all time high of 6198 in May of 2021. Steel - data, forecasts, historical chart - was last updated on December of 2021.
Steel is expected to trade at 4197.07 Yuan/MT by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3916.61 in 12 months time.