Shanghai steel futures traded near 5,600 yuan a tonne, not far from the record level of almost 6,000 hit on May 11th boosted by growing industrial demand while supply remains scarce in the aftermath of Covid-19. The US announced trillions of economic stimulus to support post-COVID recovery including funds for infrastructure such as new roads, rail and housing while the EU is committed to reaching net-zero emissions. Elsewhere, powerhouses China and Russia are trying to limit exports to help other industries at home. Meantime, the latest data showed China’s crude steel output rose by 11.8% from a year earlier in the first half of the year. China pledged to limit crude steel output in 2021 at no higher than the 1.065 billion tonnes it made last year but at the half-way stage of the year, the country has already produced 563.33 million tonnes of the metal.
Historically, Steel reached an all time high of 6198 in May of 2021. Steel - data, forecasts, historical chart - was last updated on July of 2021.
Steel is expected to trade at 5824.56 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 6553.68 in 12 months time.