Steel markets under pressure due to weak demand, falling prices: Fitch

By Ovunc Kutlu

ISTANBUL (AA) - Global steel markets are under pressure due to weak demand and falling prices, Fitch Ratings said on Friday.

"Subdued demand in global steel markets and declining steel prices, further weakened by high exports from China, are putting pressure on producers’ margins," it said in a report.

The rating agency said steel prices have been on decline this year across all key regions.

While steel producers in Europe have undertaken capacity maintenance shutdowns, these did not support prices, it said.

Domestic steel prices in China, meanwhile, have been low for a few years, it added.

In the US, the increase of new capacity ahead of rising demand reduced the country's steel imports and domestic prices.

"Prices in the US, however, will remain higher compared with other regions due to US trade protection measures," said the statement. "We expect more countries to increase their trade protection measures in response."

Brazilian is affected by both declining prices in the US and an inflow of exports from China, according to Fitch.

The agency expects prices to start recovering only in 2025 and 2026 to varying degrees, depending on the region.