Chinese steel market optimistic in second half with incentives

In the first half of this year, overall steel demand in China was low due to the re-emergence of Covid-19 and the global economic recession. Even in the peak season such as March and April, the steel market still did not perform well.

However, steel shipments recovered significantly in July as the epidemic eased in the second half of the year and China implemented various policies to stimulate steel demand. Meanwhile, steel stock continued to decline.

In the third quarter, the demand for construction steel increased due to the continued construction of fixed assets. Apart from this, the outlook of the manufacturing industry gradually recovered. As a result, the Chinese steel market was expected to be optimistic in the second half of this year.