Demand in India, world’s third largest steel producer, is expected to grow to 81.5 million tonnes (MT) and 87.6 MT in 2015 and 2016, respectively, from 75.9 MT in 2014, the report predicts.
1.7%: Fall in global steel demand to 1,513 MT this year, WSA’s Short Range Outlook (SRO) forecasts. In 2016, it is pegged to decline by 0.7% to 1,523 MT.
Chinese economy has decelerated as the impact of the rebalancing measures on the investment and real estate sector turned out to be more severe than expected.
3.5%: Projected fall in China’s steel demand in 2015. Fall in demand likely to be 2% in 2016.
On a positive note, the recovery of steel demand in the developed economies, even though the momentum has weakened a little, remains on track.
Combined with China’s slowdown, the sector also faces low investment, financial market turbulence and geopolitical conflicts in many developing regions.
Russia and Brazil are experiencing severe contraction in steel demand. Geopolitical tensions and political instability in the Middle East, Africa and Ukraine continue to have a negative effect on the sector.