World steel demand to rise 3.2% in 2013

The World Steel Association (worldsteel) has predicted that global apparent steel use will increase by 2.1% in 2012, which is considerably lower than the 6.2% growth achieved in 2011. In 2013, world steel demand will grow by 3.2% and reach a record high of 1.45 billion tonne.

Hans Jürgen Kerkhoff, Chairman of the worldsteel Economics Committee said, “Earlier this year we were seeing some signs of recovery from the slowdown of the last quarter of 2011 and we expected a better second half performance in 2012. However, the economic situation deteriorated during the second quarter of this year due to continued uncertainty arising from the debt crisis in euro zone and a sharper than expected slowdown in China.”

These factors have weighed heavily on business confidence and manufacturing activities around the world. As a result momentum in both the developed and emerging part of the world weakened considerably, he said in a statement.

“However, we expect the situation to gradually improve in 2013 on the basis that the euro zone crisis can be contained, the US successfully deals with the fiscal tightening due in 2013 and the economic stimuli measures secure a soft landing in China. Since the 2008 economic crisis, uncertainty and volatility has become the norm for the steel industry but it is worth noting that world steel demand has maintained positive growth despite all the headwinds and lingering difficulties”, he concluded.

Steel demand in China is expected to increase by 2.5% to 639.5 million tonne in 2012 after 6.2% growth in 2011. In 2013, Government stimulus measures are likely to moderately improve the economic situation. This follows sluggish exports resulting from the global economic slowdown. Thus China’s apparent steel use is expected to rise by 3.1% and will reach 659.2 million tonne in 2013.

Similarly, due to both unfavourable domestic and external economic conditions, India’s steel demand growth is projected to slow down to 5.5% in 2012 and 5% in 2013. Apparent steel use will reach 73.6 million tonne in 2012 and 77.3 million tonne in 2013, he said.