China's steel margins pressured by higher output, slow demand recovery
China's steel prices and margins saw increased pressure in early April from continued higher production and a slow recovery in demand following the country's most recent surge in COVID-19 cases over December 2022-February. Output had risen steadily on the year through most of the first quarter and market participants now expect it to slow down mildly in late April due to the poor margins, and support prices.
However, most market sources S&P Global Commodity Insights spoke to expect China's steel demand recovery to remain weak and uneven for the rest of 2023, despite robust credit expansion and a slight improvement in home sales in March.
