World Steel Association Sees Global Steel Demand Moving Into a Low-Growth Zone

SEATTLE (Scrap Monster): The World Steel Association (worldsteel) noted that global steel demand is seen moving into a low-growth zone in the long term. However, the demand may likely witness marginal growth in the short term on the backdrop of economic and geopolitical uncertainties.

According to Andre Gerdau Johannpeter, Chairman, worldsteel, global steel demand is at inflection point, which may be followed by a prolonged period of low growth. The steel demand currently faces multiple challenges, especially from developing economies, such as deceleration of population growth, aging population and escalating income inequality. The global steel sector is also impacted by environmental concerns, he added.

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China, which consumes nearly 50% of the global steel production, is likely to witness steel demand growth of just 1% over the previous year to total 843.3 million mt. Also, the demand is expected to fall further in 2020 to 834.9 million mt. At the same time, the Chinese steel production is expected to witness a jump by 2% to touch 930 million mt during the current year, worldsteel noted.

India is expected to overtake the U.S. to become the world’s second biggest consumer of steel after China. The Indian steel consumption in 2020 is projected total 110 million mt, whereas that of the U.S.is likely to total 101 million mt. The Japanese steel consumption may touch 64 million mt in the next year.