Final steel prices from January to February this year witnessed a slight upward trend amid the easing of Covid-19 measures and a slight improvement in demand from steel users, according to the China Iron and Steel Association (CISA).
From January to February, China’s average daily crude steel production was 2.859 million tonnes, up by 13.8 per cent over December last year. However, demand growth was not fast due to the poor performance of China’s real estate market.
Moreover, as of March 10 this year, iron ore prices for Chinese domestic production rose to 1,007 Yuan/t (148 dollars/t), up by 85 Yuan/t (12.5 dollars/t) or 9.22% compared to the beginning of this year.
While, the finished steel products prices increased by 5.34% in the specified period, which negatively affected the profitability of the steel industry companies.
For March, the traditional peak season steel demand will likely improve, which will drive steel prices up.