Global steel demand growth downgraded to 1.8% in 2023 on high rates – ET Infra

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LONDON: Global steel demand is expected to rise by 1.8% in 2023 as infrastructure projects in top consumer China help to offset weakness elsewhere, the World Steel Association (WSA) said on Tuesday, downgrading its forecast.

The industry group revised its April forecast, which estimated steel consumption would rise by 2.3% this year.

“Steel demand has been feeling the impact of the high inflation and interest rate environment,” Maximo Vedoya, chairman of the WSA economics committee, said in a statement.

“Considering the delayed effect of the tightening monetary policy, we expect steel demand recovery in 2024 to be slow in the advanced economies.”

Global steel demand is expected to gain 1.9% next year to 1.85 billion metric tons after sliding by 3.3% in 2022, according to the group of producers that accounts for about 85% of global steel output.

Steel demand in China, which accounts for about half of global consumption, is forecast to rise by 2% in 2023 while the outlook for next year was uncertain, WSA said.

“We expect the situation in China’s property market will stabilise in the latter part of the year (2023),” it added

Globally, high interest rates have hit demand especially in the construction and consumer durables sectors, while recovery in auto production is expected to continue.

Steel demand is forecast to shrink by 5.1% this year in the European Union and Britain, shed 1.1% in the United States and fall 2% in Japan, but bounce back in 2024 by 5.8%, 1.6% and 0.6% respectively. (Reporting by Eric Onstad; editing by Barbara Lewis)

  • Published On Oct 18, 2023 at 11:00 AM IST

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