Uncertainty greets start of 2019

摘要

Global steel markets have not started 2019 in the best of spirits, with several factors contributing to the mood of uncertainty currently weighing on steel and raw materials prices. Share markets have been tumbling, economies have been slowing, and protectionism is expected to remain a key theme this year. China's manufacturing sector is now technically in contraction, according to purchasing managers' indices published by Caixin and the National Bureau of Statistics. Chinese consumers are buying fewer cars and fridges, meaning manufacturers need to purchase less steel. Weaker sentiment right across the manufacturing supply chain results in delayed buying decisions and downwards pressure on steel and raw materials prices. China said this month it will soon introduce some incentive schemes for auto and white goods. Buying of steel will pick up again when there is more confidence around the market direction – but at the moment, uncertainty reigns...