Finished steel prices in the January-February period this year saw a slight rising trend amid the easing of Covid-19 measures and the slight improvement in demand from downstream users, as announced by the China Iron and Steel Association (CISA).
In the January-February period, the average daily crude steel output in China amounted to 2.859 million mt, up 13.8 percent compared to December last year, while the growth in demand was not so rapid due to the weak performance of the real estate market.
Moreover, as of March 10 this year, Chinese domestic production iron ore fines rose to RMB 1,007/mt ($148/mt), up RMB 85/mt ($12.5/mt) or 9.22 percent compared to the beginning of this year, while finished steel prices only increased by 5.34 percent in the given period, which exerted a negative impact on steelmakers’ profitability.
As for March, the demand for steel is likely to improve in the traditional peak season, which will result in the rises in steel prices, according to the CISA.