The coronavirus pandemic wreaked havoc on steel markets and economies around the world, during the first six months of 2020. China’s economy was the first to suffer the effects of Covid-19-associated lockdowns. The country’s industrial production plummeted, in February of this year. However, a quick recovery has been recorded since April.
The revival in the steel market, in China, continues to gather pace, despite the onset of the rainy season. The pace of the recovery could give Chinese companies a head start when global consumers return to the market, after months of staying at home. However, growing domestic demand, in China, is likely to absorb a lot of the increased output.
Steel prices are likely to remain volatile, in the second half of 2020, as the road to recovery is expected to be uneven. The situation in the global market may get worse before it gets better.