Increasing raw material costs have affected China's steel market

In the January-February period of 2023, there was a 22.9% decrease in profits for certain large Chinese enterprises. Steel companies have been facing losses in all products except for construction steel since mid-2022. It is believed that the increase in raw material costs is one of the reasons for the decrease in company profits.

Increases in both supply and demand are expected in the Chinese steel market. The Chinese economy will recover. Steel inventories are low.

It is estimated that steel prices will peak in March-April and October-November.