In the latest market report published by Yuanta Securities Investment Consulting Co. headquartered in Taiwan, the global steel market is facing many short-term hurdles. He cited the Chinese administration’s unfavorable policy moves to curb inflation and achieve zero carbon emissions as key factors exacerbating steel market concerns.
The report notes that global steel demand continues to be robust thanks to stimulus packages announced by various countries following the Covid-19 crisis. Steel demand in the automotive and construction industries has not declined despite the pandemic and continues to rise. Meanwhile, continued labor shortages and transportation restrictions have led to restrictions on steel supplies, the report said. In addition, Yuanta predicts a significant jump in the profits of global steel producers.
One of the largest beneficiaries was China Steel Corp. is the largest steel producer in the country, which recently reported 848% year-on-year pre-tax profit growth in the first five months of this year. The company proposed to continue raising prices for steel products in the domestic market, which in turn is expected to benefit domestic downstream companies.