Global Steel Demand Outlook & Impact On Commodity Pricing

28 June 2023
Zoom

Past Event Overview

Global steel markets remain somewhat directionless in 2023, with a lack of material policy stimulus coming from China and ongoing concerns regarding economic slowdowns in North America and Europe. During this first session in the Winter Webinar series, we dived into the global steel market and explored what lies ahead.

We heard from the Royal Bank of Canada’s senior lead equity analysts – Owen Birrell (Industrials – Steel) and Kaan Peker (Resources). Both shared what they are seeing in terms of global steel, the ferrous commodity supply and demand, and their subsequent views on pricing.

Key areas of discussion included:

  • Falling input costs and rising exports from China could put downward pressure on seaborne pricing for steel in the coming months.
  • Demand for steel-making inputs softening and inventories unwinding, resulting in deceleration of iron ore, coking coal and scrap prices.
  • Chinese steel production – after a strong start to the year demand expectations have pulled back. So too the rate of domestic production and expectations for the second half of CY23.
  • The China economic recovery story playing out slower than the market expected –
    as confirmed by soft April economic data (industrial production, construction, fixed asset investment).

Event Speakers

Owen Birrell

Owen Birrell

Director, Transport & Infrastructure Research

RBC Capital Markets

Kaan Peker

Kaan Peker

Director, Australian Metals & Mining Equity Analyst

RBC Capital Markets