LONDON (Scrap Register): Morgan Stanley is looking forward to increase the global steel demand to about 3 percent to 1.6 billion tons this year and further increase it by 1 percent to 1.62 billion tons during 2018.
Global crude Steel production at the same time is expected to increase by about 3 percent to 1.65 million tons this year and further up by 1 percent to 1.67 billion tons in 2018.
Chinese Steel prices was seen to increase to about $ 470 per mt, while European prices dropped to $ 155 per mt. China is expected to produce 825 million tons crude steel per year which requires 1.12 billion mt per year of seaborne grade ore, constituting one billion mt of imports.
China's growth is expected to grow in the second half of this year on the back of policy tightening and reduced automotive and property sector activity. An economy GDP growth of 3.6 percent this year and 3.8 percent in the next year on the back of private sector recovery and upswing in the global capex cycle is expected by Morgan Stanley.