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Goldman Sachs Sees Steel Prices Holding Steady Through 2026 After April Rally

China’s slow capacity cuts temper supply tightening.

Overview

  • Goldman Sachs, in its May market barometer, expects steel prices to stay broadly stable through 2026 with the US maintaining a premium to Europe, China and Brazil.
  • Average hot-rolled coil prices rose in April across major regions, led by Brazil up 10%, Japan up 6.5%, and China up 2.9%.
  • Long steel used in construction also climbed in April, as rebar prices jumped 12% in Brazil, 6.9% in Europe and 6.1% in the Black Sea region.
  • China’s output fell 3.2% from a year earlier in the first two weeks of May, and Goldman Sachs flagged slower execution of planned capacity cuts in 2026.
  • Production trends diverged elsewhere, with India’s crude steel up 11% in March, US mills lifting April output 3% with 79.6% utilisation, and Europe rising 16% month on month in March but still 3% lower year on year.