RONSCO Weekly ┃ March 23 Steel Market Recap: Prices Drop amid Banking Crisis

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This week, steel prices in China continued to increase overall, with demand recovering and inventories staying low. However, on Wednesday, prices began to drop due to increasing uncertainty and bearish factors in the market.

First of all, a potential banking crisis caused by Credit Suisse could create a lot of instability in the international financial system. The Federal Reserve's decisions are in a difficult position.

On the one hand, the central bank is in a difficult position, as it wants to increase interest rates to control inflation, but on the other hand, it must also consider if this will worsen the financial market crisis.

Secondly, the Chinese government is likely to introduce policies to control iron ore prices in order to prevent illegal speculation and unreasonable price increases, therefore, iron ore prices may be suppressed.

Despite the challenging market conditions, China's steel industry still showed signs of strength, with production and consumption both increasing, demand continuing to recover seasonally, and inventories decreasing, all of which provided support for steel prices.

So, what will happen to the steel market next week? From RONSCO’s point of view, steel prices are likely to go down next week.

In the current bearish market, we need to consider the potential outcomes of the banking crisis, the Federal Reserve's potential to continue its tightening policy this month, and whether the Chinese government will introduce iron ore price regulation policy.

Well, do you think the Chinese steel market will go down next week? And if you enjoy this article, don’t forget to collect to our website.

Thank you so much for reading this article, see you next week!