Why Steel Prices Stay Firm Despite Uncertain Demand

Recent market signals from mid-April to mid-May show that steel prices remain supported, even though demand recovery remains uneven. The World Steel Association expects global steel demand to grow only slightly by 0.3% in 2026, before improving by 2.2% in 2027. This suggests that the demand side is stabilizing, but not yet strongly recovering.

In China, the steel sector PMI fell to 49.2 in April, remaining below the 50-point level, while the new order index also stood at 49.2. This indicates that demand has not fully returned to expansion. However, steel prices can still receive support from raw material costs, mill production adjustments, inventory strategy, freight movement, and market sentiment.

For buyers, this means price alone should not be the only focus. Quotation timing, delivery schedule, supply flexibility, and shipment planning may all affect the final purchasing result. In a market where demand is still uncertain but prices remain supported, practical coordination with suppliers becomes even more important.