China Steel Corporation Experts Predict Recovery in Steel Market Amid Global Challenges

China Steel Corporation (CSC) experts report that the international steel market experienced a downturn in 2024, yet significant recovery prospects lie ahead. Industry insiders believe that the post-disaster reconstruction in Los Angeles and the post-war rebuilding in Ukraine could stimulate strong demand for steel, potentially reversing the current slump after the Lunar New Year.

In Los Angeles, a devastating fire in 2024 razed tens of thousands of homes and inflicted losses exceeding NT$5 trillion. The anticipated surge in reconstruction efforts is expected to drive demand for steel products, particularly Galvalume Steel Coils, with orders likely to be released soon after the Lunar New Year. Furthermore, a strong U.S. dollar combined with a depreciated NT dollar—recently falling below NT$33 per U.S. dollar—has enhanced the export competitiveness of domestic steel production, benefiting first-quarter sales.

On another front, the prolonged Russo-Ukrainian War, now in its third year, is also poised to boost global steel demand. Large international investment institutions project that rebuilding Ukraine could require upwards of US$500 billion. Many market observers now expect peace to return to Europe within six months, a development that would likely spur a rebound in the steel industry.

Meanwhile, the situation in mainland China remains a key factor. During the Lunar New Year, major steel trading centers in Northern, Central, Eastern, and Southern China typically suspend operations, with trading resuming around the eighth day of the holiday. This hiatus, coupled with urgent post-holiday purchasing needs, is expected to drive steel prices higher.

Additionally, new tariff policies from the Trump administration have injected further uncertainty into the global economy. As a result, emerging markets in the Global South and other developing regions are set to become focal points for steel industry strategies heading into 2025.