What causing steel prices to soar in the global market

The market price for Steel has witnessed an upward growth since the hostilities between Eastern European nations began. The soaring prices of Steel were primarily fuelled by supply constraints in the energy market, flood in Australia, and a partial ban on the exports from Indonesia. Moreover, disruption in the supply chain and value chain also backed this bullish trend. However, currently, Steel prices reduced by 6% as coking coal prices lessened, but remaining doubled as assessed at the beginning of 2022.

In China, Steel prices soared to nearly $ 817 per tonne, the highest amount since October last year, as fears of supply shortages arose following a lockdown in Tangshan, China's largest steel production city. Transportation issues created by COVID-related restrictions in China's most prominent factories generated raw material shortages in most companies. Furthermore, increased energy costs resulting from the conflict have forced domestic companies to boost prices for massive Steel sections. Additionally, the COVID-19 lockdown may reduce demand while increasing supply, reducing some gains. However, China's steel demand is expected to rebound quickly as the country prepares to hike economic taxes and slash spending to boost investment and consumption.

In India, domestic Steel prices went up by $ 15-35 per tonne over the week on Friday, April 1, as the Indian administration has raised the fuel costs by nearly USD 0.08 per litre in the final week of March. Thus, rising fuel costs mainly backdrop this inflation over the prices of Steel. Moreover, demands for Steel from the downstream construction, automobile industry remains robust. Additionally, European Steel market players continued to hold back bookings on Europe-origin HRC due to competitive import offers and full credit of lines.

As per ChemAnalyst, "The Steel prices are expected to increase on the backdrop of robust downstream demand and disruption in the supply chain. "The domestic demand of Eastern European nations and Chinese Covid restrictions may boost the Steel prices globally.