SEATTLE (Scrap Monster): The World Steel Association (worldsteel) released its Short Range Outlook (SRO) for 2022 and 2023.
According to the report, the worldwide steel demand is expected to grow by 0.4% during the current year to touch 1,840.2 million tonnes (Mt). In 2023, the steel demand will witness further growth by 2.2% to reach 1,881.4 Mt. The projected demand growth in 2022 and 2023 comes after a growth of 2.7% in 2021. The current forecast is in the backdrop of Russia-Ukraine war and is subject to high uncertainty.
Maximo Vedoya, Chairman of the worldsteel Economics Committee noted that recovery from the pandemic shock was stronger than expected in many regions during the previous year, despite ongoing supply chain issues and intermittent Covid-19 waves. However, a sharper than anticipated deceleration in China led to lower global steel demand growth during the year. For 2022 and 2023, the outlook is highly uncertain, he added.
The magnitude of the ongoing Russia-Ukraine conflict will vary across regions, depending on their direct trade and financial exposure to Russia and Ukraine. The EU region will be impacted badly, due to its reliance on Russian energy and its geographical proximity to the conflict region. In addition, the global steel industry stares at various challenges including high energy and commodity prices as well as supply chain disruptions.