Inventory, demand to sustain steel prices in short term

Singapore, Jun 13 (SMM) – Current steel prices are likely to sustain their momentum till the fourth quarter of the year, with limited corrections from fundamentals, said general manager of SMM International, Ian Roper.

At a Refinitiv seminar in Singapore on Thursday June 13 to discuss developments in the metals market, Roper highlighted that steel prices and margins have performed well as robust steel demand absorbed the higher supply.

Going forward, “the key will be how quickly construction slows, and whether infrastructure stimulus and a recovery in private housing can offset the drop in shanty house development”, he said. “Steel margins will be continue to be key to iron ore prices,” he added.

Against the backdrop of trade disputes, China’s emphasis on infrastructure and housing has diverged the prices of commodities, with ferrous metals outperforming non-ferrous metals. Non-ferrous metals such as copper and nickel continue to face poor downstream and consumer demand.