Posted on 15 Apr 2022
Steel demand growth will slow this year as consumption in Russia and Ukraine slumps in the wake of the war, according to the World Steel Association.
Consumption will rise just 0.4% to 1,840.2 million tons in 2022, a slower pace than last year’s 2.7% increase, the industry group said Thursday. The war in Ukraine will cause steel demand in the European Union to contract as the recovery from the pandemic is delayed.
“The expectation of a continued and stable recovery from the pandemic has been shaken by the war in Ukraine and rising inflation,” said Maximo Vedoya, chairman of the association’s economics committee.
Steel’s ubiquity in manufacturing and construction makes it a key barometer for global economic growth. High commodity prices — including for steel — are threatening to fuel inflation while also hitting output. The World Steel Association expects steel demand growth to rebound to 2.2% in 2023, but adds that the forecast is highly uncertain.
“Inflation is a problem in many markets,” Edwin Basson. director-general of the World Steel Association, said in a presentation. “It will have a dampening effect on steel use.”
Demand in China — the world’s top producer and consumer of steel — will remain flat this year, despite government stimulus focused on infrastructure. Chinese demand collapsed in the second half of 2021 after the country tried to rein in its real estate sector.
Other countries including the US and India are expected to see substantial growth in demand this year.
Source:The Edge
