Steel prices drop further on soaring Covid-19 cases in China, monsoon dents demand forecasts

Steel prices have taken a hit as rising cases of Covid-19 in China, and the arrival of the monsoon has trimmed the demand forecasts for steel. The steel mills producers in China have dropped their production as lower steel prices are eating their profit margins.

The China economy is failing to contain the spread of the pandemic. The recurring resurgence of Covid-19 in China has scaled down their manufacturing activities and, subsequently, the steel demand. Despite the implementation of the zero-Covid policy, cases of Covid-19 are surging daily. After reporting more than 1,200 new cases over the weekend, the economy reported almost 700 cases on Monday. The cases of the pandemic are increasing at an increasing rate, which may not only affect the production process but will also trim the personal demand.