STEEL NEWS

Citibank predicts 15% rise in steel prices

Steel prices in China, according to Citibank's forecast, are expected to rise by 15% this year, Dow Jones reports, due to government restrictions on metal production to meet carbon emission targets and rising demand for steel amid the global economic recovery. It is estimated that a rise in steel prices could increase the profitability of steelmakers in 2021 by 10-20%, and high profits will continue in 2022, subject to a further decrease in metal supply.

Citibank analysts predict that tight production restrictions in the Tangshan steel hub will continue in the near future, but they believe that new production restrictions may soon be in other provinces as well.