Economy
April 10, 2014
BofAML Quarterly Steel Outlook
Written by Sandy Williams
Bank of America Merrill Lynch gave their quarterly global steel outlook on April 8. BofAML predicts demand for finished steel in China will grow 4.4 percent in 2014. Chinese crude steel production is expected to increase 4.6 to 815 million tons. The outlook is for a trend of slowing but positive growth.
Despite mill closings due to government crackdowns on environmental issues and tougher credit requirements, China still has over one billion tons of overcapacity. The recent slowdown in production is attributed to seasonal slowing with production picking up in March and with warmer weather.
