According to Worldsteel forecast, global steel demand will start to recover in 2023 after falling 3.2% in 2022. East Asia and Southeast Asia will contribute the majority of demand growth in 2023, offsetting weakening in Europe and the United States.

The downtrend in China's construction activity, which has slowed since April due to a weaker-than-expected real estate sector, is expected to continue into June, putting Chinese steel prices under pressure. Steel demand and Chinese steel prices may rebound in August-September, given the fiscal boost to the infrastructure sector and its spillover effects on the manufacturing sector. But the upside could be modest, unless government-mandated steel production cuts can be triggered.

Iron ore prices fell on Monday after Chinese planners issued a warning to prevent speculation in the market and new production restrictions were introduced in major steel-producing cities. of China.