China steel prices continued to rise in August mainly supported by deepening capacity cuts. These continue to feed the perception that there might be tight supply of steel in the Chinese market. With crude steel production up 1.5% year-on-year in July, and exports at more than 10Mt, we do not see any tightening of steel supply materialising any time soon. In the USA, prices have continued to fall, undermined by weakening demand and rising steel imports. As price premia in the USA remain persistently high, there is still scope for further price declines in the remainder of the year. The same outlook applies to prices in Europe, where anti-dumping duties have afforded a degree of stability to prices, despite the uncertainty caused by Brexit, the decline in construction and the slow-down of manufacturing activity. In August, we have added downstream product coverage to our US steel demand model summarised in an insight - What drives US flat steel demand?
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Commodity market report | Aug 2016
Global steel short-term outlook August 2016
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