The steel market extended its upward momentum into April, with Shanghai steel futures rising above 5,000 yuan a tonne for the first time ever ahead of a seasonal recovery in demand and uncertainty over supply after top steelmaking city Tangshan pledged to cut emissions by 50% during days of heavy pollution. Domestic demand is likely to be spur by strong construction and manufacturing activities over the coming peak season. China’s property and infrastructure investment surged 38.3% and 36.6%, respectively, in the first two months of 2021 as the economy consolidated its recovery from the coronavirus blow; and industrial profit surged 179%. Latest data from Worldsteel showed most regions reported a decline in crude steel output in February, led by North America (down 8.9%), the European Union (down 7.1%) and Africa (down 6.4%). On the other hand, China the world's largest steelmaker produced about 83 million tonnes in February 2021, up by 10.9% from February 2020.
Historically, Steel reached an all time high of 5076 in April of 2021. Steel - data, forecasts, historical chart - was last updated on April of 2021.
Steel is expected to trade at 4746.57 Yuan/MT by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3881.11 in 12 months time.