World steel prices fell in December

Global steel prices remain under pressure due to sluggish global demand and high inventories.

In North America, steel prices continued to weaken throughout December amid lackluster domestic demand, while a strong US dollar discouraged exports. Shoppers are postponing purchases that may resume after the holidays.

Chinese spot prices hit record lows as local producers sell excess inventory at discounted prices. With domestic demand slowing, China continues to sell off its exports at surprisingly low prices. As a result, steel mills in Taiwan and South Korea reduced domestic sales.

However, US flat steel prices may have bottomed out as many domestic steel mills announced price increases for the first quarter. But it is currently unclear if the price increases will be accepted by the market.