Moody's: Price has returned to normal after global steel supply and demand stabilized.
Rating agency Moody's said the imbalance between global steel supply and demand will stabilize in 2022 and steel prices will return to historically normal levels from this year's high.
Moody's said that as the global vaccination rate rises, the epidemic is expected to subside and governments will remove stimulus policies. Eventually the market will return to normal and overall steel demand may decline.
Moreover, Moody's said that the 2022 iron ore price will be closer to the 2016-2019 US$70-80/MT level.
The overall steel price will remain high at the moment due to tight supply, but the price will gradually reverse according to the supply and demand balance.
In addition, Moody's said that the coke price will also return to normal as the trade war between China and Australia is expected to ease.
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