Steel prices set to rise further, specialist warns

Steel prices will continue to climb in 2021 according to structural steel specialist.

The price volatility and scale of increases in 2020 had been unprecedented. The cost of iron ore, used to make steel, and scrap steel almost doubled last year, pushing up the price of steel products. The specialist warned the trends seen in 2020 are set to continue. “The market remains very competitive and continued price escalation and the availability of some raw materials remains a concern,” he said.Steel has been one of a raft of materials that has been hit by shortages and price rises over the past year.

The Chinese city of Tangshan, a steelmaking hub, has taken steps to curb steel production in an effort to limit pollution.However, steel production in China remains robust, reaching a capacity utilization rate of 87%.

Chinese steel prices, meanwhile, appeared stronger this past month , the China HRC price surged to $820 by April 1.From mid-March to mid-April, China HDG, CRC and plate prices increased by double-digit percentages.