Global Steel demand to drop in 2016 and bounce back in 2017: worldsteel

Published: Apr 14, 2016 14:21

Save

The World Steel Association (worldsteel) forecasts that global steel demand will decrease by 0.8% to 1,488 Mt in 2016 following a contraction of -3.0% in 2015.

CHINA April 13 2016 6:28 PM

LONDON (Scrap Register): The World Steel Association (worldsteel) forecasts that global steel demand will decrease by 0.8% to 1,488 Mt in 2016 following a contraction of -3.0% in 2015. In 2017, it is forecast that world steel demand will return to growth of 0.4% and will reach 1,494 Mt.

Commenting on the outlook, TV Narendran, Chairman of the worldsteel Economics Committee said; “The economic environment facing the steel industry continues to be challenging with China’s slowdown impacting globally across a range of indicators contributing to volatility in financial markets, sluggish growth in global trade and low oil and other commodity prices.”

“The global steel market is suffering from insufficient investment expenditure and continued weakness in the manufacturing sector. In 2016, while we are forecasting another year of contraction in steel demand in China, slow but steady growth in some other key regions including NAFTA and EU is expected. Growth for steel demand in all markets except China is expected in 2017,” Narendran added.

There are several downside risks to worldsteel forecast: the Chinese real estate market and corporate debt problem, anxiety in the financial markets, high (household) debt and volatile capital flows in many emerging economies, geopolitical tensions and unstable political situations in several regions could further worsen the global economic environment.

World Steel Association steel demand steel supply steel prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

9 hours ago

Geopolitical Turmoil and Energy Chain Disruptions Likely to Drive Petcoke Prices Up [SMM Analysis]

9 hours ago

11 hours ago

Aluminum Futures Rise 1.98% to 23,180 Yuan, Breaking Recent Range

[smm aluminum alloy futures review] the most-traded al2604 futures contract fluctuated upward today. after a slight pullback in the early session, it stabilized and continued to rise in the afternoon, reaching the day's high at the close. it closed at 23,180 yuan, up 450 yuan/mt from the previous close, with a gain of 1.98%. trading volume was 14,947, and open interest was 6,875, mainly due to short positions being reduced. during the day, trading volume slightly increased while open interest decreased, indicating a rise on reduced positions. the price broke through the recent range, closing with a bullish candlestick. the kdj indicator turned upward, suggesting that bulls had an advantage in the short term, and the sentiment in the futures market was relatively strong.

11 hours ago

Today's secondary aluminum alloy market prices were raised

[Secondary Aluminum Alloy Daily Review] Today, the quotations in the secondary aluminum alloy market were generally raised. Before noon, manufacturers generally increased prices by 100 yuan/mt, and some enterprises, supported by bullish expectations and low finished product inventories, raised their prices by up to 200 yuan/mt. In the afternoon, futures significantly surged, further strengthening market sentiment, and some manufacturers followed suit with another price hike, resulting in a cumulative increase of 100-400 yuan/mt for the day. As enterprises gradually resumed production, market supply slowly recovered, and willingness to sell among manufacturers improved; however, the pace of resumption of work downstream after the holiday was relatively mild, and the release of orders remain

11 hours ago