Global Drivers of Steel Prices

Up to 1,800 million metric tons of steel are produced annually. Steel is used to manufacture various items, from kitchen utensils to cargo ships. Although steel prices are subject to the principles of supply and demand, other factors affect steel pricing.

When demand for steel rises, prices increase. So when China, a leading steel exporter, was growing, building skyscrapers and expanding its road network, global steel supply dropped. Consequently, steel prices went up.

Then China eased its development efforts, and its demand for steel waned. The surplus steel production flooded the international market, driving prices down.

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