worldsteel Expects Chinese Steel Sector Demand to See Negative Growth

SEATTLE (Scrap Monster):  In its latest update to Short Range Outlook (SRO) for 2021 and 2022, the World Steel Association (worldsteel) noted that the recovery in steel demand in the EU region, which started in H2 last year, is gathering pace with all steel-consuming sectors reporting positive recovery.

According to the SRO, Chinese steel sector demand is expected to report negative growth for the remainder of the current year. As a result, the overall steel demand in the country is likely to register overall decline by 1% during 2021. This is despite positive apparent steel use growth of 2.7% till August this year. The SRO expects no growth in Chinese steel demand in 2022.

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The steel demand in developed economies is likely to regain pre-pandemic levels by end of next year, rising by 12.2% in 2021, followed by 4.3% in 2022. The U.S. steel demand may witness further upside potential in the event of enactment of infrastructure stimulus programme. The German steel demand in 2022 will be boosted by strong order backlog in the manufacturing sector.

Japan continues to witness gradual recovery in steel demand. The report anticipates positive growth in all all steel using sectors in the country during 2022. Meantime, South Korean steel; demand is likely to retrace 2019 levels during the current year.