Steel prices today increased to 4,470 yuan / ton on the Shanghai Exchange. The Indian government’s infrastructure push, coupled with an increase in demand from industries, is expected to boost domestic steel consumption in 2022.
Steel prices continue to increase today.
Steel price today delivered in May 2022 on the Shanghai Exchange increased 48 yuan to 4,470 yuan / ton at the time of survey at 7:55 am (Vietnam time).
|
Type name |
Period | January 6 | Difference from previous transaction |
| Steel price | Delivered in February 2022 | 70.000 | -250 |
| Copper price | Delivered in February 2022 | 24.400 | +25 |
| Zinc price | Delivered in February 2022 | 151.720 | -1.740 |
| Nickel price | Delivered in July 2022 | 4.801 | +9 |
| Silver price | Delivered in May 2022 | 4.470 | +48 |
The Indian government’s push for infrastructure, coupled with an increase in demand from construction, engineering and other sectors, is expected to boost domestic steel consumption in 2022.
Iron ore chart at Shanghai Exchange (Source: Shfe)
India’s consumption is expected to grow to 111 million tonnes in calendar year 2022, after being hit hard in 2020 causing steel consumption to drop to 89.3 million tonnes, CARE Ratings said.
India’s steel consumption figure in 2021 is estimated at 104 million tons, up 17% year-on-year. From April 2021 to November 2021, consumption reached 66 million tons, up from 55 million tons in the corresponding period of 2020.
The US recently announced $1 trillion in infrastructure spending, brokers said. This could significantly boost India’s steel consumption, thereby keeping steel prices stable in the US market.
On the other hand, China – the world’s largest steel consumer and producer, has reduced exports by continuing to restrict production to reduce carbon emissions, thereby keeping world export prices high.
In addition to steel production and consumption, supply chain performance and logistics arrangements are expected to play an important role in 2022 as the pandemic continues to spread across countries.
Photo: London Metal Exchange
A senior official of a primary steel producer commented: “Companies and countries around the globe have taken measures to strengthen logistics but no one knows if what has been done is enough. . That will only be clear in 2022.”
During the fiscal year 2022-2025, a total crude steel capacity of around 25 million tonnes is likely to be added to the domestic Indian market. Of which, 7-8 million tons will be put into operation in the financial year 2022, while the rest will take another 2-3 years to put into operation.
Therefore, brokers said, although domestic consumption is likely to be stronger in 2022, compared to previous years, prices may still decrease slightly, according to Business Standard.
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