Global Steel prices are expected to rise to $ 800 per tonne from current level of $ 660/ton over the next three months due to a mismatch between demand and demand that is expected to stay afloat, Fitch ratings Solutions said in its review of metal commodities.

“We are revising our global steel price forecast for 2021 to an average of $ 800 per tonne, which is currently $ 660 per tonne, as the persistent mismatch between supply and demand continues to lead to growth,” she said in a statement released Monday.

Global steel prices have risen sharply since the fourth quarter of 2020 as prices approached the highs last seen in mid-2008. The average steel price during 2020 were roughly around $582 per tonne.

Fitch said the rally will begin to stabilize with the second half of the year approaching (when prices in China are already starting to weaken due to government market regulation), and does not expect a significant drop in prices or collapse, mainly against rising demand, despite stable production levels.

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