Global growth forecast for steel consumption lowered to 2.1%

“Earlier, we were seeing some signs of recovery and expected a better second half performance in 2012. However, the economic situation deteriorated due to debt crisis in euro zone and slowdown in China. These factors have weighed heavily on business confidence and manufacturing activities. As a result momentum in both developed and emerging part of the world weakened considerably,” Hans Jurgen Kerkhoff, the chairman of the worldsteel Economics Committee said on Thursday.

The steel demand in China is expected to increase by 2.5% to 639.5 million tonne (mt) in 2012 against 6.2% growth in 2011. The government stimulus measures, however, may improve the economic situation and is likely to push up apparent steel use in China by 3.1% at 659.2 mt in 2013.

In India, WSA expects that the steel demand will slow down to 5.5% in 2012 and 5% in 2013. The Indian experts were also estimating similar growth. The apparent consumption of steel is expected to touch 73.6 mt in 2012 and 77.3 mt in 2013. “Given the conditions, I feel the target of reaching 200 million tonne steel production in India

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