worldsteel SRO Predicts Positive Growth to Global Steel Demand in 2019

SEATTLE (Scrap Monster): The October 2018 Short Range Outlook (SRO) published by the World Steel Association (worldsteel) forecasts positive growth to global steel demand in 2019. The global steel demand is expected to increase by 3.9% in 2018 to touch 1,657.9 Mt. The global steel demand will record further growth of 1.4% to reach 1,681.2 Mt. Rising trade tensions and escalating economic worries are likely to dent the demand growth.

The Chinese steel demand witnessed growth, mainly on account of real estate stimulus package and strength in global economy. However, the stricter environmental rules proposed by the Chinese authorities may lead to lesser steel demand towards the end of 2018 and the whole of next year. The ongoing trade war with the U.S. poses downside risks. However, stimulus measures to boost the Chinese economy may result in heightened steel demand.

According to SRO, the steel demand in developed economies is likely to increase marginally by 1% in 2018 and 1.2% in 2019. The U.S. steel demand growth is expected to witness slowdown, primarily due to moderate activity projected in automotive and construction sectors. The EU steel demand growth will also slow down in 2019.

The SRO also predicts stable steel demand in Japan and further drop in demand in South Korea. The Indian steel demand is likely to move to higher growth track. The steel demand in Asian countries excluding China is expected to grow by 5.9% and 6.8% in 2018 and 2019 respectively. Steel demand recovery will continue in Latin American countries. Turkish steel demand may contract in 2018, but may recover next year.