Steel prices could peak in 2021

14/01/2021

With demand forecast to grow 8 percent, steel prices could hit a four-year peak this year before falling as global demand stabilizes, experts say.

Steel prices are expected to maintain a positive momentum after their recovery in mid-2020, and rise in the coming months as global demand recovers and major producers worldwide experience supply disruptions due to the Covid-19 pandemic.

Steel prices began surging in the second half of 2020 on the back of strong domestic demand driven by the government stepping up disbursement for public construction projects, and domestic traders stocking up on inventory when prices began to rise.

Exports also benefited from production disruptions in major global steel producers such as the EU, U.S., India, Japan and South Korea, which saw their 11-month 2020 production fall 15 percent, 18 percent, 12 percent, 17 percent and 7 percent year-on-year.

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