Tata Steel Foresees Significantly Higher Steel Prices Over the Next Decade

The global steel market currently goes through several challenges, including rising costs.

SEATTLE (Scrap Monster): The leading steelmaker Tata Steel expects steel prices to trend much higher in the next ten years, compared with price levels seen during the past ten years. The above view was expressed by T.V. Narendran, Chief Executive Officer.

According to him, the hot-rolled coil steel prices averaged at around $400-$450 per metric ton in the past seven to eight years. He predicted that the long-term average for the product is expected to be more than $600 per metric ton. It must be noted that the current prices stand at $750 per metric ton in China and $850 per metric ton in Japan. The prices are likely to fluctuate at higher levels than in the past, he added.

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The global steel market currently goes through several challenges, including rising costs. The steel exported out of China controlled the global steel market over the past ten years. However, there exists more stability in world steel trade as of now. The Chinese steel exports have almost halved from its peak. The strict carbon emission goals set by the administration are likely to result in further reduction in output over the coming years.

Going forwards, steel demand will not be primarily driven by China. The growth in steel consumption is expected to come from other countries. The huge investment in infrastructure by Western countries could likely boost steel demand in the region.

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