Steel Market Price Levels and what's ahead of us in the upcoming months
After a rapid recovery of the markets and the demand rate, the steel prices without a doubt are still driven by the imbalance between supply and demand.
With the limited inventory levels, the scales tilt decisively in favor of the steel mills, which leads to longer delivery periods dramatically.
Strong production and despatch levels continued throughout 2021--with almost all major mills despatching at full capacity other than during scheduled maintenance outages in Nov. 2020 and June 2021. White goods and automotive sales rebounded strongly after the Covid-19 production shuts and demand shock in 2020 quarter. Construction spending increased and by increased customer activity levels, consolidation and rationalization of supply and low service centre inventories. Eventhough steel spreads improved significantly compared to last quarter, historical shortage levels are recorded during the summer of 2021.
Considering no trade challenges easing or tariffs lifting in any time soon, almost certainly ensures that we will be riding this wild wave for at least another 6 months.
August 16th, 2021