Steel demand is expected to pick up in 2017-2018

The World Steel Association (Worldsteel) announced in a report in its Short Range Outlook for 2017 and 2018 that there has been a recovery in the steel market last year. In addition, global steel demand is likely to increase in 2017 and 2018. However, the rate of growth in demand in China is slowing, affecting overall global steel demand.

Steel demand will cyclically rise in 2017 and 2018 in developed economies and is likely to continue to recover from steel demand. According to Worldsteel's forecast, global steel demand will increase by 1.3% in 2017 to 1,535.2 million tonnes in 2017. In 2018, a further increase of 0.9% is projected to reach 1,548.5 million tonnes.

Countries such as Russia and Brazil are expected to be able to see the growth in steel demand. However, the growth rate of steel demand in China may remain low. The country's steel demand is likely to remain unchanged in 2017 and then decline by 2% in 2018. As a result, overall growth momentum is expected to remain modest throughout 2017 and 2018.

Steel demand in developed countries is likely to grow. Growth in infrastructure spending by the new US administration and monetary policy in the euro area are currently identified as key factors in the projected growth in steel demand from developed countries. Developed countries will see steel demand growth of 0.7% and 1.2% in 2017 and 2018, respectively. Meanwhile, steel demand in both developed and emerging economies, excluding China, is expected to rise by 4% in 2017, followed by 4.9% in 2018.