Steel Price Index (CSPI) Trend Chart

Steel prices are likely to be "much higher" in the coming years compared to recent levels, the chief executive of a major Indian steelmaker has predicted.

Tata Steel Chief Executive T.V. Narendran said recently that the average price of hot-rolled coil steel over the past few years has been around $400 or $450 per metric ton. He predicts that the long-term average in the future may exceed $600.

Narendran explained that the steel market is going through a number of changes, including rising costs and China's changing role in the market. At its peak, China exported more steel than India produced.He added that China's steel exports have since halved to about 60 million tonnes a year and are likely to fall further as China pursues its net-zero carbon emissions target.

In January 2022, the crude steel output of the 64 countries included in the statistics of the World Steel Association was 155.0 million tons, a year-on-year decrease of 6.1%.The world's steel production is declining.

On the supply side, input costs are at "all-time highs" due to rising coal prices.Both coal and iron ore are raw materials for steel production. Steel prices could also be pushed up by rising carbon costs in Europe.As a result, the world's steel demand will be in a situation of "in short supply". In addition, due to the impact of the epidemic, there is no doubt that the price of steel will continue to rise.

China Steel Price Index (CSPI) Trend Chart

According to the monitoring of the Iron and Steel Association, at the end of January, the China Steel Price Index (CSPI) was 132.98 points, an increase of 1.28 points, or 0.97%, from the end of December 2021, and the month-on-month increase turned from a decrease to an increase; a year-on-year increase of 10.26 points, an increase of 8.36%. The figure shows that steel prices are on the rise.