UNITED KINGDOM April 21 2015 4:37 PM
LONDON (Scrap Register): The World Steel Association forecasts that global apparent steel use will increase by 0.5% to 1,544 Mt in 2015 following growth of 0.6% in 2014. In 2016, it is forecast that world steel demand will grow by 1.4% and will reach 1,565 Mt.

The outlook for the steel industry suggests slow growth for global steel demand.

Commenting on the outlook, Hans Jürgen Kerkhoff, Chairman of the worldsteel Economics Committee said, “We are releasing a restrained growth outlook for the global steel industry mainly due to the deceleration in China. The outlook also reflects the influence of major structural adjustments in most economies, particularly owing to limited investment growth post 2008.”

As these changes take effect, the steel industry will experience a slower pace of growth, it will focus on operational efficiencies and on the value that steel products generate for customers and society.

While worldsteel continues to face some downside risks coming from some parts of Europe – geopolitical instability, international capital flow volatility and the economic slowdown in China – the impact of these risks has come down.

worldsteel has also started to see some encouraging developments. We hear increasingly positive news from developed economies, especially signs of firming recovery momentum in the Eurozone.

In the developing and emerging world, worldsteel sees increased optimism about India and growth in steel use in some MENA and ASEAN countries.

While these developments will not be enough to counterbalance the deceleration of China, worldsteel expects to see gradually improving growth prospects beyond 2016.

An interesting factor which has become increasingly apparent is that in some developing economies the steel markets are beginning to exhibit the characteristics of mature markets.