Chinese Steel Makers Expect Strong Demand in Apr-Jun Quarter
Reuters reported that China Iron and Steel Association China’s steel makers foresee a strong second quarter on continued high demand and expect raw material prices to fall from recent peaks as supply tightness eases. CISA said “Steel makers expect to see a sharp ramp up in activity in China’s construction industry in April-June period, as well as a drive by manufacturers to stock up on steel products. As fundamentals improve, iron ore prices may fall from high levels and coke prices are expected to return to a reasonable range. Steel inventories are expected to decrease in the second quarter.”
HBIS Group and Anshan Iron and Steel, two major steel firms in top producer China, were among those to take part in a seminar organised by the China Iron and Steel Association to discuss recent developments and future trends.
Chinese steel mills increased crude steel output by 13% YoY in the first two months of 2021, betting on strong construction and manufacturing demand in the upcoming peak season, although sky-high raw material costs largely eroded margins.