After several months in which economies and subsequently steel mills were reeling from the aftermath of the coronavirus shock, demand for steel is starting to increase. And with it, the prices of one of the engineering industry’s basic raw materials are also rising.
Many steel mills around the world are finally beginning to resume their operations to a greater extent after being forced to suspend it due to a coronavirus pandemic. Indeed, demand for steel is growing, especially from automakers and engineering equipment, and with it the price. The steel market in China, where anti-epidemic measures began unravelling months earlier than Europe or the United States, has seen the strongest growth. The price of steel in China has risen by 37 percent since April.
The rest of the world will wait for its sharp growth in steel demand and may not occur until the last quarter of this year, according to analysts. But in some countries, signs of such a recovery are already being felt now. But experts warn that despite the recurring growth of steel demand, companies processing this metal cannot enjoy significant growth in profits. In fact, companies increased costs during the coronavirus pandemic, and so there was a slight decrease in their margins. Among those most affected currently are steel mills in the United States.