worldsteel SRO Predicts Recovery to Global Steel Demand in 2018 and 2019

SEATTLE (Scrap Monster): The World Steel Association (worldsteel) has released its April 2018 Short range Outlook (SRO). According to worldsteel, global steel demand is expected to post a growth of 1.8% in 2018 over the previous year to reach 1,616.1 Mt. In 2019, the demand is expected to grow further by 0.7% to touch 1,626.7 Mt.

The SRO predicts flat steel demand in China during the current year. The demand is expected to shrink by nearly 2% in 2019, mainly on the back of continuous slowdown in construction activity. Despite boost in construction sector activity, aided by government’s stimulus measures, steel demand witnessed only moderate increase in 2017. The SRO predicts mild decline in country’s GDP growth during 2018 and 2019.

On the other hand, steel demand by developed countries is likely to increase by 1.8% in 2018. However, the demand is predicted to fall by 1.1% in 2019. The report predicts robust outlook for steel demand growth in the US, backed by strong economic fundamentals. Manufacturing and construction sectors will account for much of the demand. The broadening economic recovery across European countries may boost steel demand in the region. The automotive sector in the US and the EU is predicted to moderate during this period. The anticipated monetary tightening in the US and the EU will result in deceleration of steel demand growth in 2019.

The scope of steel demand growth will be limited in Japan during 2018 and 2019. The growth will remain constrained in South Korea too.

The emerging and developing economies excluding China will be the key drivers to global steel demand growth. The steel demand from this region is expected to grow by 4.9% and 4.5% in 2018 and 2019 respectively. The rise in oil and commodity prices will favor MENA countries. Russia and Brazil are likely to witness mild economic recovery. Turkish steel demand is expected to report stable growth in 2018 and 2019. The Indian steel demand is expected to accelerate gradually, SRO said.