Global steel prices overall upward demand has not improved significantly

As steel prices in Asia continued the upward momentum of the previous 2 weeks, global steel prices showed a comprehensive upward trend this week.

Including Japan, Europe, North America, China, Turkey and other major steel-producing countries of the leading steel mills have basically announced a new round of increase, due to the basic synchronous rise in raw material prices and become the main factor to boost the price of finished steel, while demand in most areas has not improved significantly, so the profitability of steel mills is still relatively severe. For example, in the European market, the increase in production costs, including iron ore, scrap steel, energy, freight rates, is compounded in the off-season consumption, and many steel mills have reduced production. That has prompted mills to raise output prices, even though orders have not improved.

In Asia, due to the continued strength of the RMB, as a major exporter of galvanized round pipe, seamless carbon steel pipe, alloy steel tube, pressure vessel steel plate and other steel products, China's steel offshore US dollar prices have been boosted, which has supported the steel prices in Asia to a certain extent. However, including China, Turkey, Japan, Vietnam and other steel mills production enthusiasm is also low, coupled with China's port raw material inventory is still high, it is expected that the future iron ore and scrap demand side momentum is difficult to continue.