2019 PREVIEW: 6 key factors that could affect Asian steel prices

Asian steel markets are in for another tumultuous year judging by the rate at which new developments are expected to spring up in 2019.

China remains the center of interest, and rightly so, because its economic and governmental policies have cascading effects on the international steel market. While its progressive economic policies have served it well in sustaining its domestic steel sector in the past few years, things are set to change for the world's largest steelmaker from 2019. The Chinese government is slowing down on its capacity cuts and shifting its focus toward driving demand through steady economic growth and the encouraging the production of higher-quality steel. This is in part achieved through the implementation of supportive monetary policies such as the reduction of banks' reserve requirements, cutting taxes, driving infrastructure growth and increasing government spending. But with no clear end in sight for China’s ongoing trade war with the United States, which has affected Chinese manufacturing output and steel demand, will these measures work this year? Growing steel capacity in Southeast Asia - its largest market...

Published

Jessica Zong

Paul Lim

Fiona Lam

Miranda Song

January 09, 2019

11:15 GMT

Singapore, Shanghai