China steelmakers expect strong Q2 demand, drop in iron ore prices - association

Chinese steel mills boosted output by 13% year-on-year in the first two months of 2021, betting on strong construction and manufacturing demand in the upcoming peak season, although sky-high raw material costs largely eroded margins.

The steel industry should pay attention to whether its downstream clients are able to pass on the high cost of the metal to their own customers, since that will directly affect demand, CISA said.

Steel users such as home appliance manufacturers have already raised prices for their products due to high procurement costs.