Are steel prices close to their peak?

The steel market has grown strongly over the past year. Numerous anti-dumping duties have changed the international flow of steel. After a sharp drop to the bottom, prices quickly climbed. Some types of products are already reaching the top of their price.

According to analysts at MEPS International, world prices for rolled metal products are already close to the peak of the current cycle. Supply and demand are balanced. However, the projected decline in prices will be less severe than in previous cycles.

MEPS predicts that global players have learned the lesson and understand the effects of overcapacity well above the needs of their markets. The industry suffers from excessive imports and the authorities are resorting to market protection tools.

It is important that the Chinese authorities maintain a policy of closing the least efficient and most obsolete factories. Many of these have already been set aside for permanent closures. On the other hand, the rest of the sites will have to invest more in environmental protection systems.

On a broader scale, this also has a positive impact on the global steel market, which will reduce the risk of excessive price falls as producers ramp up production to capitalize on high prices.