Steel prices continued to decline amid continued weak demand in China, falling to a 22-month low. In contrast, non-ferrous metals like copper, aluminum and zinc have been treated well.
Steel prices fell 5% last week. Chinese steel futures are currently trading below 4,300 yuan.
As it stands, steel prices have fallen almost 38% from their 2021 highs, but are likely to be supported by China seeking to resume production after recent restrictions.
Demand for steel is only expected to be weak in China and stronger in the rest of the world. In the United States, the recently passed $ 1 trillion infrastructure bill, which includes overhaul of roads, bridges and waterways, is expected to boost declining demand for steel.
In a report, ArcelorMittal said it expects Chinese demand to continue to contract this fiscal year, but outside China, demand for steel could increase by 12 to 13 percent.
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