What factors are driving the surge in overseas steel prices

The soaring steel prices in the United States and Europe are mainly due to the improvement of the epidemic situation, the restoration of activities supporting industrial production, the shortage of steel supply, and the soaring price of iron ore, the raw material for steel production.

Steel prices skyrocketed, driven by the supply and demand fundamentals. On the demand side, with the improvement of the epidemic situation, PMI of manufacturing industries in the United States and Europe rebounded sharply. Industrial production and other activities continued to boost steel consumption. While the demand for rapid repair, the repair of crude steel production in the United States and Europe is very slow. Take the United States as an example, as of May, crude steel production still did not return to the pre epidemic level.

In addition to the increasing contradiction between supply and demand of steel itself, the soaring price of iron ore, the raw material for steel production, has further increased the pressure of steel price increase from the cost side.

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