Posted on 27 Sep 2024
Chung Hung Steel predicted that the current steel market has reached its worst situation. As the US interest rate cut cycle begins, the Chinese government's bullish financial policies have injected impetus into the long-sluggish steel industry.
However, Chung Hung Steel mentioned that the most critical factor is China's overproduction of steel. Even if the government's bullish policies bring short-term relief, the subsequent impact still needs to be observed.
On the other hand, the US election will affect the global economic situation. In addition, the US Federal Reserve's interest rate cuts, the recent recovery of the Japanese yen, and the withdrawal of funds are expected to have positive incentives for traditional industries and enhance the future trend in 2025.
Chung Hung Steel quoted data from the World Steel Association that the accelerated global decarbonization actions will strengthen the positive development of global steel demand, which was expected to continue to grow by 1.2% in 2025 to 1.815 billion tons.
Source:Yieh
