worldsteel Forecasts Global Steel Demand to Hit 1,735 Mt in 2019

SEATTLE (Scrap Monster): The World Steel Association (worldsteel) published its April 2019 Short Range Outlook (SRO). The report predicts moderate growth to global steel demand in 2019 and 2020 in the midst of slowing economic environment. The demand is expected to rise by 1.3% over 2018 to touch 1,735 Mt during this year. Also, it foresees further 1% growth in steel demand during 2020 to total 1,752 Mt.

According to the report, Chinese steel demand is expected to remain robust in 2019, mainly due to heightened stimulus measures by the country’s administration. As the stimulus effects subside in 2020, the demand is forecast to see slight contraction.

The steel demand by developed economies is expected to decelerate by 0.3% in 2019 and 0.7% in 2020. The U.S. steel demand growth is expected to slow down. The deteriorating trade environment and Brexit uncertainties are likely to impact EU steel sector growth. The likely moderation of construction activities and decline in exports will lead to minor contraction in Japanese steel demand. The Koran steel market may extend decline in 20198, but may recover in 2020.

The steel demand in developing economies excluding China is expected to report 2.9% and 4.6% surge in 2019 and 2020 respectively. The Asian region excluding China is expected to grow by 6.5% and 6.4% in 2019 and 2020 respectively. Rising infrastructure development projects are likely to support demand for steel in the ASEAN region.

The Latin American region is likely to witness broad recovery in steel demand. The steel demand from GCC countries are expected to contract in 2019. However, a minor recovery is expected in 2020.