Steel prices see more downside on renewed lockdown fears in China

Steel prices have been declining for the past few weeks after the steel mill owners halted the production of steel due to a major slump in the overall demand. The already lower demand market is expected to see more vulnerability amid renewed fears of lockdown restrictions in China.

Major Chinese cities: Shanghai and Beijing were facing the headwinds of the resurgence in Covid-19. Manufacturing activities were halted and the PMIs data was declining firmly. The pandemic fears have grown again on rising Covid-19 cases in China and the administration is likely to announce lockdown curbs to contain the same. This will lead to further loss in the steel demand in China.