The effects of the uncertainty created by the coronavirus outbreak in China are continuing to impact the steel market globally. Most global indicators for steel prices have corrected significantly during the last 10 days. New pressure is expected to be confirmed this week as China officially returns to work following the New Year celebrations and the real impact of the virus is assessed.

Iron ore ended last week below $88/tonne cfr Qingdao, the lowest level since November last year. The slump then continued as the new week started, with prices dropping to below $80/t cfr Qingdao on Monday.

Chinese mills are now starting to limit output in response to the coronavirus outbreak and iron ore demand is likely to be further impacted. New corrections this week are therefore very likely and should also affect finished steel product prices.