Steel prices at 6-month high as China cuts 2022 crude steel output

Steel prices are at six-month highs because the Chinese market has cut its crude steel production. In March, Chinese steel production is down by nearly six percent, compared to the same period a year before and in the first quarter of this year, the production is down 10.5 percent to around 243 million tonnes.

It is noteworthy that Tangshan, China’s steel production hub, has implemented another round of lockdowns in four districts for at least three days from Tuesday according to a government statement.

Market watchers say that speculative trading has been on the higher side after the interest rate cut by the Bank of China. There is an expectation of a stimulus cushion as a slowdown in steel will directly impact the manufacturing sector.

Demand for steel and steel products has been high after the pandemic lockdowns across the world have eased and the Tokyo steel company has raised steel product prices by 2 to 3 percent for the month of May.