Worldsteel downgrades steel demand forecast for 2014 and 2015

The forecast published by the World Steel Association (Worldsteel) has been revised downward in global steel demand in 2014-2015. The positive momentum in the second half of 2013 abated in 2014, and steel demand in emerging economies weakened substantially throughout the year, according to the report.

The report predicts global steel consumption will rise to 2 percent or 1,562 million tonnes in 2014. In addition, steel use will grow by another 2 percent in 2015, or 1,594 million tonnes. Earlier, an April 2014 report predicted 3 percent growth in global steel demand during 2014 and 3.2 percent in 2015.

The structural phase transformation of the Chinese economy has led to a slowdown in demand for steel. Falling commodity prices and geopolitical tensions have already slowed steel use in South America and the CIS. Markets in the US, EU and Japan are expected to remain strong throughout the year amid robust growth in demand from the auto and energy sectors. However, the intensity of these markets will remain insufficient to offset the downturn in emerging economies.

Steel demand growth in developed countries is likely to be moderate in 2015. On the other hand, growth in new and emerging economies may slow down. Changes in the balance sheet in China will continue to negatively affect steel demand.