The steel industry has been notifying an increase in product prices one after another since the beginning of the year. Although some negatively interpret that it is a signal of a series of inflationary rises, most experts view it as an economic recovery signal.
The steel industry, one of the representative feeder industries, is showing signs of recovery. As they gradually escaped from the blows caused by the spread of COVID-19, expectations for the recovery of the new year's real economy are growing. It is said that prices will rise as expectations that steel demand will increase this year due to increased automobile production and infrastructure investment.
According to the steel industry, POSCO is planning to increase the distribution price of hot-rolled steel sheets by 50,000 won per ton in January and February, respectively. If the price increase becomes a reality, the cost of hot-rolled steel will reach 800,000 won in four years after 2017.
Some analysts say that expectations for an economic recovery are reflected in global steel price hikes as the governments of countries such as the U.S., China, and Europe continue to pursue stimulus measures.
The World Steel Association also predicted this year’s global steel demand to reach 1,795.1 million tons, up 4.1% from 2020. As the construction industry, which is expected to expand infrastructure investment along with the increase in automobile production, is leading the rise in demand, it is predicted that the steel demand will increase by more than 30 million tons compared to 2019, before the COVID-19 crisis hit.
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