Economy

Global Steel Demand Forecast Up 3 percent for 2013 and 2014

Written by Sandy Williams


Apparent steel use is expected to grow around 3 percent for both 2013 and 2014 says the World Steel Association in its Short Range Outlook.

lobal steel demand is expected to increase to 1.475 billion metric tons in 2013, up 3.1 percent over 2012. WSA says steel use will continue its growth trend in 2014 increasing by 3.3 percent to 1.523 billion Mt.

Worldsteel economics committee chairman Hans Jurgen Kerkhoff said the key risks–Eurozone crisis and Chinese economy–have been stabilizing. 

“In 2014, we expect to see continued recovery in global steel demand with the developed economies overall returning to positive growth,” said Kerkhoff. “At the same time we expect slower growth in China. With risks within the developed world receding there is some uncertainty emerging from developing countries due to unresolved structural issues, political instability and volatile financial markets. All in all, despite economic conditions for the global steel industry remaining uncertain and challenging, we are forecasting further growth for steel demand in 2014.”

US apparent steel use is expected to grow by only 0.7 percent in 2013 following a strong 7.8 percent in 2012. Demand is expected to pick up in 2014 to 3 percent aided by the improving global economy and activities in the automotive, energy and residential construction sectors.

China growth is expected to show an increase of 6 percent in 2013 to 699.7 Mt due to infrastructure building. Growth is forecast to slow in 2014 to 3 percent as China continues to rebalance the economy.

“Major emerging economies, particularly India and Brazil have not performed as hoped mainly due to key structural issues,” said Kerkhoff. “These factors have led to lower steel demand than predicted across the world, with China being the one exception.”

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