World Price of Steel

Steel prices are influenced by a complex interplay of factors. Supply and demand dynamics form the core, with economic cycles and consumption patterns in key sectors playing crucial roles. On the demand side, steel is heavily used in the construction, automotive and machinery manufacturing industries, so changes in these industries’ performances impact demand for steel and thus steel prices. It’s important to note that China alone consumes approximately half of global finished steel products, so changes in China’s economy have a significant impact on steel prices.

On the supply side, manufacturing capacities, raw material costs and government regulations impact the availability of steel globally. With China producing mor than half of global steel, any changes in Chinese government policies related to environmental regulations or exports impact the global supply of steel. The global price of iron ore is also a critical determinant of steel prices, as iron represents up to 99% of steel composition. With more than half of global iron ore being produced in Australia and Brazil, production capacity and new exploration projects in these regions significantly impact the global price of iron ore.