POLICY

摘要

Global market uncertainty remains as countries end or ease lockdowns imposed to fight the COVID-19 pandemic. Caution was also high as indications emerged that China may be facing a new wave of infections, as did Japan and South Korea – all major steelmakers. A new wave could postpone initial forecasts of recoveries in various sectors to 2022 instead of 2021. China’s property and infrastructure construction, which accounted for more than 55% of China’s total steel consumption, picked up strongly in May, providing firm support to the domestic steel market at a time when the country’s crude steel output hit an all-time high. Market sources expected steel demand from infrastructure construction to remain strong in the second half of 2020, driven by supportive fiscal policies such as boosting local governments’ special bonds. However, sentiment regarding property sales over July-December was mixed, with some expecting monetary loosening to offer strong support, while others were more cautious.