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High raw material prices are putting pressure on the Chinese economy

The recovery in China is slow, which has a deficit in the price-demand curve. With an increase in supply and demand, steel prices are also expected to increase during the winter season.

High raw material prices are putting pressure on the Chinese economy

According to research conducted by the China Statistics Bureau, the profit margins of certain large enterprises decreased by 22.9% in January-February 2023, indicating a slow recovery in China.

Since June 2022, high raw material prices in China have caused a deficit in all products except for iron ore.

Currently, with low steel inventory levels in China, the improvement of supply and demand is expected to follow the economic recovery.

According to market representatives, steel prices are expected to increase in March-April and again in October-November.

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