CISA: Chinese Steelmakers to Witness Robust Activity During Q2

SEATTLE (Scrap Monster): The steelmakers in the country are expected to witness robust activity during the second quarter of the current year, said the China Iron and Steel Association (CISA).

The projected strong Q2 is mainly on account of ongoing high demand of steel products, boosted by economic revival following the slump due to coronavirus pandemic. The easing of supply tightness may lead to dip in raw material prices from its peaks, which in turn may benefit the steelmaking industry. The opinions were shared during the recently held seminar on recent developments in steel industry and future trends, which was attended by top Chinese steel producers including HBIS Group and Anshan Iron and Steel.

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The participants highlighted the possibilities of a sharp ramp-up in activity by steel mills, driven by heightened construction sector demand. The manufacturing sector demand is also expected to remain strong. Incidentally, the output by Chinese steel mills surged higher by nearly 13% year-on-year during the initial two-month period of 2021. However, the sky-high raw material prices impacted the profitability of steel companies during this period, CISA noted.

Going forward, CISA expects iron ore prices to fall from its high levels and coke prices to return to a reasonable range.