Positive cues from China – which accounts for 56.5 per cent of global crude steel production – are likely to keep demand-supply in balance and provide support to prices. All eyes have been on China, which opened last week after New Year holidays, as it was widely expected that prices would recover post-holidays after the weakness in January. Jayanta Roy, senior vice president, ICRA pointed out, barring last year when Covid-related restrictions affected China's steel demand in February 2020, historical trends show a typical upward movement in steel prices post-new year festivities. China’s opening post-holidays was keenly awaited, especially in the wake of the sluggishness in the market in January. After peaking at $770 a tonne for hot rolled coil (HRC) in December, Chinese prices dropped to $625 a tonne in January ’21. However, it recovered to $645 a tonne in February.