worldsteel SRO Forecasts 6.4% Contraction in 2020 Steel Demand

SEATTLE (Scrap Monster): The Brussels-headquartered World Steel Association (worldsteel) announced publication of Short Range Outlook (SRO) for 2020 and 2021.

The global steel demand is expected to contract by 6.4% in 2020 to 1,654 million tonnes (Mt), mainly on account of crisis situation due to Covid-19 pandemic. Meantime, worldsteel expects steel demand to see recovery by 3.8% in 2021 to 1,717 Mt, compared with 2020. The above forecasts are based on the assumption that lockdown measures in majority of countries would be lifted before July this year and that major steel producing nations are not hit with a second wave of the pandemic.

China, in particular, is expected to recover more quickly than other countries of the world. The successful containment of the virus without second and third peaks and continuation of stimulus measures by various governments could lead to relatively quick recovery, worldsteel noted.

Mr Al Remeithi, Chairman of the worldsteel Economics Committee said that the customers have been hit by reduced demand, shutdowns and supply disruptions. Consequently, steel demand is expected to witness significant decline in most countries   during Q2 this year. Although situation is expected to report gradual improvement, the recovery path is expected to remain slow, he added.