ArcelorMittal Foresees Lower Steel Consumption Growth This Year

SEATTLE (Scrap Monster): ArcelorMittal expects the growth in global steel consumption in 2022 to be lower than the previous year. The forecast was provided in its recently released annual report.

According to the company, the global steel consumption in 2022 is expected to grow only by 1%, compared with 4% during the previous year. The above forecast is based on current economic outlook. The ease in lockdown restrictions resulted in progressive improvement in economic activity in 2021. The anticipated growth in 2022 is despite slight moderation in tight market conditions.

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The U.S., which recorded 20% growth in 2021, is expected to witness 1-3% growth this year. The growth will be mainly driven by automotive sector. The 0-2% growth in the European region will be mainly on account of strong growth in automotive sector and moderate growth in infrastructure and construction sector.

The CIS growth will be confined to 0-2%, as compared with 3% growth in 2021. The steel consumption growth in India too is expected to decline from 17% in 2021 to 6-8&% in 2022, ArcelorMittal noted. The overall Chinese demand is expected to register decline between 0% and 2% during the current year.

The steel maker noted that fundamental outlook for steel looks positive for medium to longer term.