UNITED KINGDOM October 15 2015 9:40 AM

LONDON (Scrap Register):The World Steel Association (worldsteel) forecasts that global steel demand will decrease by -1.7% to 1,513 Mt in 2015 following growth of 0.7% in 2014. In 2016, it is forecast that world steel demand will show growth of 0.7% and will reach 1,523 Mt.

According to worldsteel, the performance of some key emerging and developing economies started to deteriorate in 2012 due to internal structural issues, lower commodity prices associated with China’s economic slowdown, and in some cases, escalating political instability. 

For example Russia and Brazil are experiencing severe contraction in steel demand. Geopolitical tensions and political instability in the Middle East, Africa and Ukraine continue to have a negative effect. 

On the other hand, steel demand in India and Mexico and other countries in the ASEAN and MENA regions is expected to maintain growth momentum despite the adverse external environment due to positive domestic demand and progress in reform.

Steel demand in the emerging and developing economies excluding China will, despite the major slowdown in some countries, grow by 1.7% in 2015 and 3.8% in 2016.