Steel demand to stay strong

• Published 08 Apr 2010

Even allowing for a real estate market that cools relative to the peaks of 2009, steel demand should remain buoyant this year on strong infrastructure spending as well as firm auto and white goods demand.

Iron ore prices are moving once more in the direction of the levels they hit before the global financial crisis. Steelmakers in China and Japan have recently entered into quarterly supply contracts with iron ore miners overseas at prices that are nearly double the peaks seen in 2009. Such are the manifestations of the return to a bull market, but how long can these conditions continue, given Beijing's intent to rein in credit expansion this year and keep inflation under control?

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