The outlook for the global steel industry has been revised to stable from negative, Moody’s Investors Service has said in a new report.
Demand is picking up as pandemic-related lockdowns are eased and supporting industries resume production, though a virus resurgence is still a key risk for steelmakers.
“Demand for steel is improving on a resumption of production in important end markets and on stronger global economic data, particularly in China,” said Carol Cowan, a Moody’s Senior Vice President.
“We expect operating conditions for steelmakers to continue to improve over the next 12 to 18 months, barring a resurgence of the coronavirus.”
After pandemic-related shutdowns, production is now ramping up in the automotive and industrial sectors, Cowan says.
Meanwhile, the construction sector, the largest consumer of steel worldwide, has remained resilient throughout the pandemic and even picked up in countries with infrastructure- focused stimulus programmes, such as China.
