Steel short-term outlook August 2023

Global crude steel production rose by 6.6% year on year in July, with mixed performance across regions. Chinese housing markets are still deteriorating without a clear end. However, steel output remains strong despite sluggish demand. India’s steel demand continued to be robust in July thanks to the thriving construction sector. On the flip side, rising interest rates and high inflation continued to weigh on market sentiment in the West where steel demand and supply remained subdued For the rest of the year, we are expecting a mandated output cut to occur in China, which will support steel prices and margins. Indian steel market will continue to shine led by pre-election investment. However, Europe and America will be under-performing given weak macroeconomic factors continue to suppress the market.