The CTDI China Steel Index is the most effective tool to track China’s influence over the world’s steel industry, the backbone commodity of the globe’s industrial and infrastructure activity.
As the world’s largest producer and consumer of crude steel, China directly influences prices of both steel and raw materials used in steel production. When domestic Chinese demand for steel drops, China exports surplus steel and drives down international prices as a result. If steel output falls, the demand for raw materials will slow down and further affect prices. All these supply chain workings makes China the biggest influencer of the global steel industry.