After witnessing weak production globally for the five quarters in a row, signs of green shoots are finally visible in the steel sector. There was a 1.8 per cent jump in the global steel output during the September quarter, thanks to a rebound in production in China.
“Bulk of the rebound in steel prices is driven by raw material price hikes along with some contribution from a less-worse demand scenario,” the brokerage firm said.
Global and Chinese steel prices have risen 56 per cent YTD (Year to date), bringing idle capacity on stream, as operations have become more viable. However, the sector is not completely out of the woods yet, the brokerage said.