In the middle of the year, steel and raw materials will become cheaper.

The cost of metallurgical products on world markets will decrease during the second and third quarters of 2023, according to industry analyst Andriy Tarasenko. According to him, the main reason is the overproduction of steel in China. As a result there is currently a decrease in prices for the main raw materials of steel production.

Iron ore fell from $120 per ton at the beginning of the year to $100-$110 per ton, and coking coal from $400 per ton to about $250 per ton. Scrap metal also became cheaper. Market experts expect a price drop by $30-$50 from the current price level. At the beginning of May, it was being traded at $370 per ton.

Oleg Hnitetskyi, another profile analyst, expects steel prices to fall in the coming months. According to him, by June-July they will reach their lowest point, and closer to the end of the year they will stabilize due to the need for European consumers to replenish their stocks.