Will the steel price recovery last?

Steel became a lot cheaper last year. The global steel price lost 9% of its value in 2018 due to continued overproduction, weak demand and economic policies in the US. The price recovery seems to have set in early this year. Although the global steel price has risen by 4% since 1 January, there is still a lot of uncertainty about the sustainability of this recovery. However that may be, we still see a few rust spots. Above all, overcapacity is the biggest problem. That will cause the most headwind on the road to market balance in the sector.