Author: Paul Ploumis
21 Apr 2015 Last updated at 03:31:50 GMT
SPOKANE (Scrap Monster): The World Steel Association (worldsteel) has released its Short Range Outlook (SRO) for 2015 and 2016. As per the report, the world apparent steel use is likely to increase marginally by 0.5% in 2015 to 1,544 Mt. Furthermore, global steel demand is likely to witness stronger growth of 1.4% to touch 1,565 Mt in 2016.
The major structural adjustments by world economies coupled with deceleration in China will result in a slower pace of growth. The geopolitical instability and capital crisis situation in some parts of Europe continue to drag the global steel sector. However, the impacts of these factors have come down. In fact, some encouraging developments are seen in some of these countries.
In the emerging economies, India is being viewed as a prospective market which could report increased activity during 2015 and 2016. The steel usage by India is likely to report growth of 6.2% and 7.3% in 2015 and 2016 respectively. The growth rates in India would be the highest among Top 10 steel using countries as in 2014. A significant growth in steel use is expected in some MENA and ASEAN countries too.
However, these positive sentiments would be insufficient to compensate the deceleration in Chinese market. The country’s steel demand will continue to register negative growth of -0.5% in 2015 and 2016. The steel demand growth may gradually improve in China beyond 2016, the report states.
The steel demand in developing economies (excluding China) is expected to grow by 4% in 2016, following a growth of 2.4% in 2015. The United States which had recorded 11.7% growth in steel usage will witness negative growth of -0.4% in 2015. However, steel usage may recover marginally by 0.7% in 2016.