Steel prices drop on lower output expectations globally and lockdown fears in China

Steel prices have dropped significantly as production expectations have been trimmed significantly to the worse for the first time in two years after the pandemic. The market participants have slashed the output forecasts as higher price pressures are biting the margins of the company.

Higher raw material prices and a simultaneous decline in the overall demand due to real income shocks and lower consumer confidence have dampened the demand for various commodities.

As per the report on Global Business Outlook from S&P Global, the net balance of companies globally is indicating a rise in business activities over the year by 22%, which is well below the decade high of 41%. The recorded figure of 22% is the lowest since the emergence of Covid-19.