Unlike 2015 and the first half of 2016, where sagging demand was coupled with too much supply, 2017 marked an extraordinary year for steel producers. In China, the closure of induction-furnace capacities along with stronger-than-expected demand, particularly from the construction sector, provided a much needed support to prices. Soaring raw materials costs, most notably during the first half of the year, added a ‘cost push’, further strengthening prices. 2017 saw the average cost for finished steel increasing by approximately 21%. After five consecutive years of either cost stagnation or relief for producers, higher prices for iron ore, coal and scrap took their toll on steelmakers’ costs.