CRU: Steel Sheet Prices Start 2020 Up; Demand Recovery's in Sight

By CRU Analyst James Campbell, from the Steel Sheet Products Market Outlook

2019 was a bad year for the steel industry. Prices and margins collapsed and, outside of China, demand contracted. However, the combination of a new restocking cycle and reduced output in many markets allowed producers to raise prices and margins at the end of the year, although still below sustainable levels. The outlook for 2020 is brighter. Growth is forecast outside of China, but the improvement is not expected to take hold until the second half of the year. Capacity additions mean it is unlikely that we will see a prolonged period of high margins across the industry as supply additions are expected to outpace demand over the next few years. This is a problem for a steel industry where a drive towards investment intensive decarbonization is beginning.