worldsteel Interim Report Paints Grim Picture for Steel Demand

SEATTLE (Scrap Monster): Owing to unprecedented disruptions caused by COVID-19 pandemic, the World Steel Association (worldsteel) had earlier announced that it will not publish the Short Range Outlook (SRO) for the month of April 2020. Meantime, the Association released an interim steel demand report, following the recent meeting of its Economic Committee.

According to worldsteel, the global steel industry is seen hit badly by restrictions imposed by several countries to contain the spread of the pandemic. Lack of infrastructure projects and delay in construction projects, coupled with collapsing oil prices have led to huge drop in steel demand.

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The manufacturing recession, especially in developed economies, is likely to lead to further drop in steel demand in Q2 this year. The continuation of supply chain disruptions, depending on the duration of lockdowns in various countries across the world, may make quick recoveries difficult. The Committee anticipates sluggish recovery of demand from the automotive industry post lockdown period.

Although the duration of disruption could not be judged currently, it is estimated that impact on steel demand is expected to be less severe than those during the 2008 global financial crisis, the Committee noted.