World Steel Association SRO Update Foresees Dip in Steel Demand in 2022

SEATTLE (Scrap Monster): The World Steel Association (worldsteel) published an update of its Short Range Outlook (SRO) for 2022 and 2023.

As per the update, it expects world steel demand to contract by 2.3% during the current year to total 1,796.7 million tonnes (Mt). The steel demand will witness modest recovery of 1% in 2023 to reach 1,814.7 Mt. The updated forecasts are much lower when compared with the earlier forecast, primarily driven by high inflation and rising interest rates. The Chinese slowdown, coupled with high inflation and monetary tightening are likely to drag demand in 2022. Meantime, increased demand from infrastructure sector will lift 2023 global steel demand, it noted.

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China, the leading producer and consumer of steel, recorded 6.6% contraction in steel demand during the initial eight months of the current year. The country’s steel demand is projected to witness 4% in the whole year 2022. The newly announced infrastructure projects and anticipated recovery in real estate market will further contraction in steel demand next year, world steel noted.

Indian steel demand is poised to record high growth, driven by robust urban consumption and infrastructure spending.