Steel Demand in Advanced Economies Declined in 2020

The report predicts substantial recovery in 2021 and 2022, with demand expected to surge by 8.2% and 4.2% respectively.

SEATTLE (Scrap Monster): The Short Range Outlook April 2021 report published by the World Steel Association (worldsteel) indicates that steel demand by world’s advanced economies posted double-digit decline during the previous year. The demand recorded year-on-year decline by 12%. The activity levels continued to remain well below the pre-Covid-19 levels as at the end of 2020.

The report predicts substantial recovery in 2021 and 2022, with demand expected to surge by 8.2% and 4.2% respectively. However, the 2022 demand is likely to still fall well below 2019 levels, worldsteel noted.

ALSO READ: worldsteel SRO Foresees Notable Surge in Chinese Steel Demand 

The fiscal stimulus measures announced by the U.S. government helped the U.S. economy to record strong rebound after the first wave of pandemic infection. Despite boost in manufacturing sector, the overall U.S. steel demand reported sharp decline by 18% in 2020. The fiscal proposal by the new Biden administration promises further upside potential for steel demand in the longer term.

The report predicts healthy recovery by EU steel-using sectors in 2021 and 2022, mainly driven by automobile sector and public construction activities. The report foresees moderate recovery in Japanese steel demand. It must be noted that the country’s steel demand had dipped by almost 17% in 2020.

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