CRU: Slow unfurling for raw material demand expected

Steelmaking raw materials demand

In the period between mid-February and mid-March, CRU forecasts global demand for steelmaking raw materials to change little from the previous month, but buying activity will improve towards the end of next month. In Europe, more blast-furnace (BF) restarts are unlikely to occur, but low inventories of raw materials and recent BF restarts will increase purchases moderately. In the JKT region in East Asia, domestic steel demand will remain weak – particularly from the construction sector – where a bubble burst and labor shortages are expected to further drag on performance. Steelmakers in the region will also face fierce competition with China in the export market. In order to pass the cost increases onto steel buyers, they are strategically lowering production.