The average steel price is, however, expected to decrease again to $730/t, $700/t and $650/t in the next three years, respectively.
The steel price has averaged $698/t in the year-to-date and remains sensitive to stimulus announcements from Mainland China.
Although the global economic outlook remains bleak at the moment, with the manufacturing sector continuing to hinder growth in developed markets, BMI says China’s exports and domestic consumption growth from the automotive sector will support steel prices, as will India’s continued demand strength.
This while the Chinese property sector continues to grapple with challenges, including investment in the real estate sector having declined by 9.6% year-on-year in 2023.
