Global steel demand projected to further grow in 2021-22

By Tuba Sahin

ANKARA (AA) - Following a marginal growth of 0.1% last year, global steel demand is projected to further rise in 2021 and 2022, the World Steel Association (Worldsteel) said Thursday.

Steel demand will hike 4.5% year-on-year to 1.86 billion tons in 2021 and see a further rise of 2.2% to 1.9 billion tons next year, said the group's October Short-Range Outlook.

"Strong manufacturing activity bolstered by pent-up demand is the main contributor," Saeed Ghumran Al Remeithi, the chairman of the Worldsteel economics committee, said.

The current forecast assumes that with the progress of vaccinations across the world, the spread of coronavirus variants will be less damaging and disruptive than seen in previous waves, it said.

As a stronger-than-expected recovery was seen in steel demand this year, the forecast across the board except for China was revised upward, Al Remeithi stressed.

"Due to this vigorous recovery, global steel demand outside China is expected to return earlier than expected to its pre-pandemic level this year," he said.

Worldsteel projected the steel demand of China, the world's biggest steel user and producer, to contract by 1% in 2021 as its economy lost its strong recovery momentum after this July.

Steel demand is expected to stand still in China next year, with the real estate sector remaining depressed in line with the government policy stance on rebalancing and environmental protection, it added.

Al Remeithi highlighted that developed economies performed better than developing economies thanks to higher vaccination rates and government support measures.

After narrowing by 12.7% last year, the steel demand of developed economies will boost by 12.2% in 2021 and 4.3% in 2022, reaching its pre-pandemic level, Worldsteel projected.

The world's second-largest steel user India's steel demand is expected to jump by 16.7% to 104.3 million tons this year and 6.8% to 11.4 million tons next year.

The steel demand in the US will rise by 15.3% to 92.3 million tons in 2021 and by 5.7% to 97.5 million tons in 2022.

Turkey's steel demand will exceed the pre-currency crisis level of 36 million tons in 2022, it said, as the country will see 7.2% growth in demand next year following a 17% rise this year.