Coronavirus: Impact on the global steel market
Commodity Inside expects that the downward trend in steel prices seen in Asia is due to continue, as economic disruptions increases in various other markets. Furthermore, we expect the number of coronavirus cases to increase in Brazil and the US, which implies that the steel market is going to have both supply and demand been disrupted in the coming weeks. In fact, the US government is likely to announce even more restrictive measures, which are going to impact the US economy. The US has already put a travel ban on Europe and is expected to take more actions which may affect its domestic market.
Meanwhile, the outbreak in Europe is likely to reach its peak in April, reducing steel demand and removing support for import prices. In Asia, we see an improvement in China, which slowly starts to return to normality. However, the situation could worsen in other countries, such as India. That is why we expect prices to go down around the world in the coming weeks.
Ramadan, which is an Islamic fasting month, is likely to start from 24th April 2020 and will last for one month. This would slow down construction activities in Muslim dominated countries, particularly in Indonesia and Malaysia, which are some key market in South East Asia.
The above analysis is extracted from our regular steel reports.
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