Fitch: Global steel sector faces increasing pressures due to falling demand

Fitch Ratings indicated that the global steel sector is facing increasing pressures due to falling demand and prices, especially with the rise in Chinese exports that weaken producers’ profit margins. The rating outlook for global steel companies varies based on their debt reduction paths and liquidity risks. In Europe, maintenance operations that halted production at some European producers failed to support prices, while prices in the United States remain higher due to trade protectionist measures. Fitch expects a gradual recovery in prices to begin between 2025 and 2026, especially in Europe with the implementation of a mechanism to calculate the cost of carbon emissions in prices. Many countries are also preparing to increase trade protectionist measures in response to the increase in exports.