What are the reasons for the price increases in raw materials such as steel?
Here is the English version of the analysis on the drivers behind the recent steel price surge. Steel Price Surge Driven by Five Interlocking Factors: Tight Supply-Demand, Policy Constraints, Cost Push, Export Boom, and Market Sentiment The upward trend has been particularly pronounced since April 2026. I. Supply Side: Persistent Contraction, Growing Rigidity Crude steel output cuts: 2026 crude steel production to be reduced by ~3%, with key regions required to cut no less than 15%. In April, key steel mills’ daily crude steel output fell 4% YoY – a clear supply inflection point. Environmental & carbon constraints: Under dual‑carbon goals, tighter standards (energy saving, ultra‑low emissions, differential power pricing) raise compliance costs, accelerate exit of small/mid mills, and reduce supply elasticity. Voluntary output controls: After weak profitability in 2025, mills proactively control production and schedule more maintenance; inventories...
