WSA: steel demand growth to remain ‘weak’ for now

Global – Global steel demand will increase by a slender 0.2% to 1.501 billion tonnes this year following a contraction of 3% in 2015 and will accelerate by a slightly more substantial 0.5% next year to reach 1.51 billion tonnes, according to the latest forecasts from the World Steel Association (WSA).

Growth momentum is expected to ‘remain weak for the time being’ owing to ‘the continued rebalancing in China and weak recovery in the developed economies’.

Steel demand in China is projected to decline by 1% this year and by 2% in 2017 whereas emerging and developing economies (excluding China) are predicted to post growth of 2% and 4% in the same years respectively.

The EU steel demand recovery remains on track thanks to ‘resilient consumption and a mild recovery in construction’ whereas demand in the USA is struggling to expand owing to, among other factors, the impact of a strong dollar on the manufacturing sector, says the WSA.

Meanwhile, steel demand growth in Japan has been subdued by structural issues and the appreciation of the yen following the UK’s Brexit vote.

Overall, steel demand in developed economies is projected to increase by 0.2% in 2016 and by 1.1% in 2017.