Global Steel Demand To Grow 3.9% In 2019, 1.7% In 2020: WSA

Global steel demand will grow by 3.9 percent to 1,775 mt in 2019 and will grow by another 1.7 percent in 2020, reaching 1,805.7 mt.

Demand remains resilient despite an uncertain global economic environment, driven by developing and emerging economies.

In 2019 Worldsteel forecasts that steel demand in China will grow by 7.8 percent to reach 900.1 million tons (mt) and the rest of the world is expected to record 0.2 percent growth to 874.9 mt.

In 2020, Chinese steel demand is expected to grow by 1 percent, whereas steel demand in the rest of the world will grow by 2.5 percent, driven by 4.1 percent growth in the emerging and developing economies excluding China.

Al Remeithi, Chairman of the Worldsteel Economics Committee said, “The current Short Range Outlook suggests that global steel demand will continue to grow in 2019, more than we expected in these challenging times, mainly due to China. In the rest of the world, steel demand slowed in 2019 as uncertainty, trade tensions and geopolitical issues weighed on investment and trade. Manufacturing, particularly the auto industry, has performed poorly contracting in many countries, however in construction, despite some slowing, a positive momentum has been maintained. While the global economic outlook is highly unpredictable, we expect to see further growth in steel demand in 2020 of 1.7 percent, with emerging and developing economies excluding China contributing more. This forecast faces significant downside risks if the current level of uncertainty prevails.”

Chinese steel demand showing high growth in 2019 owing to a strong real estate sector, but forecasted to slow down in 2020.