Steel Prices Could Soar Compared to Long Term Average

Steel prices to soar much more than seen in last 10 years, warned T. V. Narendran – Chief Executive Officer of major Indian steel marker Tata Steel.

In an interview with CNBC, Narendran told in the last seven- or eight-years average price of steel was around $400 or $450 per metric ton. However, in the coming years long term average could reach more than $600.

According to CNBC, prices of steel were $750 in China and $850 in Southeast Asia on Friday.

“I expect it to be in that space and that range — fluctuating of course, but fluctuating at a higher level than we’ve seen in the past,” he said as reported by CNBC.

China exports of steel halved to around 60 million tons a year and expected to further fall as the country pursues net-zero carbon emission goals. He added for the first time in years demand for steel is not driven by China and the World Steel Association expects growth in steel consumption in 2021 is expected to be from countries other than China.