High input costs, policy support will likely keep steel prices higher than 2025
But weakness in the construction sector and China’s property sector downturn will cap steel offtake, say analysts
Global steel prices are projected to remain above the 2025 level, primarily due to heightened input costs and policy-driven support in Western markets, according to research firm BMI. However, weakness in the construction sector and a slowdown in China's property market will limit steel offtake. Despite this, analysts expect prices to remain range-bound for the rest of the year, with risks favoring the downside.
The World Steel Organisation anticipates a transition to modest growth in 2026, with more pronounced acceleration expected in 2027, driven by shifts in regional dynamics. China's demand contraction is expected to decelerate in 2026, while demand growth in emerging markets, particularly India, remains robust. The OECD warns of persistent challenges for the global steel industry, including a projected increase in excess capacity through 2028 and a sluggish demand growth rate of around 0.9% per year through 2030.
Concerns over energy costs and coking coal prices, as well as potential protectionist trade policies in the West, are expected to support steel prices, keeping the global average above the 2025 level through the end of 2026.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
