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Steel use to surge 9% in 2006

Archiv – This year has brought strong growth in steel use, according to latest figures from the International Iron and Steel Institute (IISI). The Brussels-based organisation expects global apparent steel use to jump 9% from 1.029 million tonnes in 2005 to 1.121 million tonnes this year, although latest projections for 2007 suggest more modest growth of 5% to 1.179 million tonnes. Belgiium | This year has brought strong growth in steel use, according to latest figures from the International Iron and Steel Institute (IISI). The Brussels-based organisation expects global apparent steel use to jump 9% from 1.029 million tonnes in 2005 to 1.121 million tonnes this year, although latest projections for 2007 suggest more modest growth of 5% to 1.179 million tonnes.
China and Asia have continued to dominate the world market, says IISI. With increasing expenditure on infrastructure and construction in India, IISI forecasts the country’s apparent steel use will grow 10% this year. However, China is expected to outstrip even India’€™s performance with an increase 14.4%.
Steel use in the EU has been strong, with the construction and engineering industries leading the way, IISI goes on to report. The strong recovery in Germany has made a significant contribution to the projected 8% growth in apparent steel use across the EU. IISI suggests that this figure includes some addition to inventories as well as a rise in real steel use.
Growth in the tube and pipe sectors in Russia has contributed to strong economic development in the CIS region. The NAFTA region has also seen strong growth with an 8% increase in steel use this year. However, higher interest rates and energy prices are expected to affect apparent steel use later this year and into 2007.
South America’€™s apparent steel use is predicted to grow 11% from 32 million tonnes in 2005 to 36 million tonnes this year. Meanwhile, shipbuilding is said to have supported a 1% rise in Japan’€™s apparent steel use during 2006.
China will again see the strongest growth in 2007, with IISI projecting a 10.4% increase in steel use from 374 million tonnes this year to 413 million tonnes in 2007. For the whole of the world, IISI is predicting a growth rate in apparent steel use of 5.2% for next year.
IISI is also forecasting average annual increases in world steel demand of 4.9% for the years to 2010. However, steel requirements in India and China are expected to rise over this period by, respectively, 7% and 8.4% per annum. Projections for 2010 to 2015 indicate 4.2% annual growth in global steel demand, with the upturn in steel consumption reaching 7.7% per year for India and 6.2% per year for China during the same period.

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