Global steel prices remain hampered
by the unexpectedly slow recovery in China’s post-pandemic economy, leading
Fitch Solutions’ research arm to cut its 2023 global average forecast to $US730
($1074) a tonne from $US825.
BMI said it expected China’s
construction sector to begin to turn “before the end of the year”. It was
betting on further stimulatory measures to bolster the real estate sector in
particular.
However, it
said steel’s lacklustre year had also reflected headwinds elsewhere.
“In major developed markets, tight
financial conditions and mounting inflationary pressures will continue to
hinder growth,” the firm said.
In addition, Russia’s war against
Ukraine was expected to have a further impact on Europe’s overall
economic outlook and to place a constraint on steel demand and
therefore prices. BMI forecast global growth to slow to 2.1 per cent this year
from 3.1 per cent in 2022.