Steel Demand in Ex-China Developing Economies Witnessed Recovery

SEATTLE (Scrap Monster):  The updated Short Range Outlook (SRO) by the World Steel Association (worldsteel) said that steel demand in developing economies excluding China continued to register modest recovery in 2021. The increased vaccination levels in these countries will lead to further improvement in steel demand in 2022.

India is on track to a healthy recovery from strict lockdown in 2020. The country’s steel demand witnessed only a minor downtrend, despite being hit by a second wave of the pandemic this year. According to worldsteel, Indian steel demand is likely to reclaim the 100 million tonnes mark this year itself.

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The recovery in ASEAN region is expected to remain moderate. Vietnam stares at scaled-down outlook for the current year on account of surge in pandemic infections. The moderate demand outlook is also attributed to delayed infrastructure projects in Philippines.

The Latin American steel demand, except Brazil, was hit badly by pandemic during the previous year. However, 2021 witnessed surprisingly strong recovery by countries in the region. The region could see significantly weaker momentum in 2022.

The steel demand recovery in the GCC region was not up to expectations, mainly due to reduced construction activity. A rebound in automotive sector coupled with government subsidies to construction sector led to revived steel demand in Russia. Also, Turkish steel demand is projected to surpass the pre-currency crisis level in 2022.