Steel prices continued to decline on the back of persistent weak demand in China, dropping to a 22-month low. In contrast, non-ferrous metals like copper, aluminium, and zinc have been done well.
Last week, steel prices were down 5 percent. China’s steel futures are now trading below 4,300 yuan.
As things stand, steel prices are down by nearly 38 percent from their 2021 highs but are expected to be buoyed with China looking to resume production after recent restrictions.
The demand for steel is expected to be weak only in China and stronger in the rest of the world. In the US, the recently passed $1 trillion infrastructure bill, which includes an overhaul of roads, bridges and waterways, is expected to give a fillip to the flagging demand for steel.
In a report, ArcelorMittal said it expects Chinese demand to continue to contract this financial year but outside China, the demand for steel could gain between 12 to 13 percent.
For more, watch the video