Steel demand forecast in 2016 – 2017

The World Steel Association has released its steel demand forecast for 2016-2017. Thus, global steel demand is expected to decline by -0.8% to 1,488 Mt in 2016. And in 2017 it is estimated that the world steel demand will return with an increase of 0.4% and will reach 1,494 Mt.

Commenting on this forecast, T.V Narendran, Chairman of the Worldsteel Committee said: „The economic environment facing the steel industry continues to be challenging, with China’s economic slowdown having a global impact. The global steel market suffers from insufficient investment and problems in the manufacturing sector. In 2016, we forecast another year of contraction in steel demand in China. With slow but steady growth in some key regions, including NAFTA and the EU. Growth for steel demand in all markets except China is expected in 2016-2017.

With the exception of China, the construction sector is expected to maintain its slight recovery pace, especially in India, the ASEAN and MENA regions.

Steel demand in some emerging economies continues to perform below expectations. Geopolitical tensions are present in many of the emerging economies.

Brazil and Russia are also facing domestic problems. Steel demand in both economies is expected to contract sharply in the coming period. In particular, in the Brazilian economy where political uncertainty led to a severe contraction in steel demand of -16.7% in 2015. It was followed by a contraction of -8.8% in 2016, with a recovery of only 3.1% in 2017.

Article source:  http://www.worldsteel.org/media-centre/press-releases/2016/worldsteel-Short-Range-Outlook-2016-2017.html