BMI Predicts Subdued Global Steel Prices in 2024

SEATTLE (Scrap Monster): According to latest research report published by BMI, global steel prices are likely to remain subdued in 2024, despite anticipated recovery in Chinese local prices in the latter half of the year. The subdued global average prices will be mainly on account of notable dip in prices in major markets other than China.

The quarterly BMI report published in December 2023 the global steel demand continues to remain weak, driven by weaker demand from manufacturing and construction sectors in developed economies and persisting weakness in Chinese property sector.

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The economic growth in developed countries may be impacted by tight financial conditions and rising inflation. The prolonged Ukraine war will further diminish the economic outlook of the entire EU region, which in turn will dent steel demand and prices.

BMI expects steel prices to start 2024 at a lower base level than previously expected. It reduced the global average steel price forecast for the year to $740 per tonne, down from the previous prediction of $780 per tonne.

On the global supply side, production has started to show signs of recovery. BMI expects stronger growth in steel demand in 2024. The Chinese steel mills are expected to drive output. The production will likely recover in other key markets as well.

The report predicts stable steel demand in India. On the contrary, the U.S. steel demand may face downside risks.