The global demand for steel is decreasing less than had been expected, but this is largely because of increasing consumption in China, according to the World Steel Association.
Worldwide, demand is forecast to shrink by 2.4 percent this year because of the pandemic, the association said in October. Four months earlier, the prediction was for a 6.4 percent contraction. This improvement, according to the chairman of the association’s Economics Committee, results from China’s “surprisingly resilient rebound,” which is expected to boost the nation’s steel consumption by 8 percent this year.
“In the rest of the world, we will see a sharp contraction of steel demand, both in developed and developing economies,” he said.
In the United States, demand is forecast to drop by 15.8 percent, with the association stating, “Recovery from the lockdown has been strong, aided by substantial government support measures. The manufacturing downturn was shorter and less acute than expected. However, the US is still struggling to control the virus’s spread, and the recovery momentum might taper off in the coming months.”
Global demand is projected to increase by 4.1 percent next year. Demand in the United States is forecast to grow by 6.6 percent in 2021.
Moody’s Investors Service, meanwhile, upgraded its outlook for the global steel industry in October from negative to stable.
“Demand for steel is improving on a resumption of production in important end markets and on stronger global economic data, particularly in China,” a Moody’s senior vice president said. “We expect operating conditions for steelmakers to continue to improve over the next 12 to 18 months, barring a resurgence of the coronavirus.”
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