Fitch Downgrades 2019 Global Steel Price Outlook

Fitch Solutions Macro Research has revised its 2019 outlook for global steel prices downward as global prices continue to suffer from weak sentiment amid continuing U.S.-China trade tensions and growing risks to the global economy.

Over the long term, Fitch Solutions is of the opinion that prices will come down and go into a multi-year decline as key figures are weakened by falling demand and increased production. We revise our 2019 global steel price forecast from an average of $ 650 /t to $ 600 /t due to continued weak investor sentiment amid continuing U.S.-China trade tensions and increased risks to the global economy in downward side. continues to put pressure on prices. "

He added: “On the fundamentals, in China, while demand from the infrastructure and construction sectors has been exceptionally strong this year with targeted stimulus measures in place, steel production has also skyrocketed, weakening the market. We believe that steel demand in China will continue to rise as infrastructure projects begin construction, and further government stimulus, likely as tensions with the US escalate, preventing a global average collapse. ”