Global steel demand continues to grow, prices rise
Global steel demand continues to grow, prices rise

15 May 2024 – Global steel demand picks up. Steel prices for May and partly for June already raised. US government increases Section 301 punitive tariffs against Chinese steel and aluminium imports. And the global purchasing managers’ index climbs into the growth zone.

Global demand for steel continues to grow, prices are rising

Demand for steel is increasing worldwide, which is having an impact on prices. The upward trend in demand for steel is thus continuing. In China, Taiwan and other Asian countries, manufacturers are increasing steel prices for May and in some cases already for June 2024.

Steadily rising steel demand expected in 2024

Chinese steel producers are currently assuming that steel demand will continue to grow steadily in 2024. Fitch is also forecasting growing steel production in China and growing global demand for the second quarter of 2024.

US government increases Section 301 tariffs

Yesterday, Tuesday, the US government announced the already expected increase in punitive tariffs against Chinese steel and aluminium imports within the Section 301 tariffs. Accordingly, the tariffs on steel and aluminium from China will rise from the current 0 – 7.5% to 25%.

Purchasing managers’ indices signal growth

The revival in global growth momentum continued in April. The JPM Global Manufacturing PMI reached a value of 50.3 points, the third month in a row in the expansionary range above 50 points. Production and new orders continued to rise and new export orders turned from 49.6 in the previous month to a value of 50.5 and thus into growth.

Taiwan’s purchasing managers’ index jumps above 50 points

Alternative indicators such as trade data from small open economies point in the same direction. Taiwan’s purchasing managers’ index for the manufacturing sector climbed above the 50-point threshold in April after 22 consecutive months of decline, and the highly cyclical component of new export orders in the electronics sector rose sharply in March and April.

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