Even as Indian economy adjusts to the effects of demonetisation, the World Steel Association (WSA) in its short-range outlook on Friday said that steel demand in India will be the highest for both 2017 and 2018 among major steel consuming nations. In 2017 and in 2018, India’s steel demand will grow by 6.1% and 7.1% respectively. China would see a flat growth in the current year, but it is going to fall by -2% next year. Overall, global steel demand will increase by 1.3% to 1,535.2 Million Tonne in 2017, a growth of 1.0% over 2016. In 2018, global steel demand will grow by 0.9% and will reach 1,548.5 MT, WSA said.
Justifying the slower demand projection, WSA said that though steel demand would see a continuing recovery in the developed economies and an accelerating growth momentum in emerging and developing economies, China’s subdued growth would keep the growth momentum modest. WSA said steel demand in the developed economies will increase by 0.7% in 2017 and 1.2 % in 2018, while in the emerging and developing economies excluding China, which accounts for 30% of world’s total, it is expected to grow by 4.0% in 2017 and then 4.9% in 2018.
“The construction, building and infrastructure sector, which accounts for 50% of global steel use, has been showing a divided picture between the developing and developed economies. This sector has been a major driver for steel demand in the developing countries, driven by urbanisation, but activity in the developed economies since the 2008 financial crisis has been more subdue,” WSA said, adding that the automotive sector, which has been the top performer among key steel using sectors, may now be approaching a peak.