The World Steel Association (WSA) expects India’s steel demand growth to be the highest among major steel-producing nations at 5.4% to 83.8 MT in 2016, even as demand will fall globally by 0.8% to 1,488 MT after
shrinking 3% in 2015.
In its short-range outlook released on Wednesday, the global industry association forecasts that India’s steel demand would further grow by 5.4% in 2017.
India’s steel demand grew by 4.5% to 79.5 MT in 2015.
“In 2016, while we are forecasting another year of contraction in steel demand in China, slow but steady growth in some other key regions, including NAFTA and EU, is expected. Growth for steel demand in all markets except China is expected in 2017,” said T V Narendran, chairman of the World Steel Economics Committee.
Russia and Brazil would see the sharpest fall in demand in 2016 by 8.8%, it said, adding that the Chinese demand would further squeeze by 4% to 645 MT after falling 5.4% in 2015.
“The severe depression in construction activities (in China) is contributing to a slowdown in the manufacturing sectors, especially metal products as well as slower growth in automotive. A recovery for the construction sector is not forecast in the near future,” the WSA said.
However, the most spectacular turnaround could be seen in the US in 2016. The WSA hopes demand for steel would go up by 3.2% in the country after falling by 10.6% in 2015.
Japan will also enter into the positive territory by clocking 2.3% growth in consumption in the current year. Steel demand in Japan fell by 7% in 2015.
South Korea would continue with its subdued growth (0.6%) in demand in the current year.
While Germany’s steel demand would grow by 1.2% in the current year after declining by 1.5% in 2015, Turkey’s demand growth will fall to 3.3% in the current year after a spectacular 11.7% growth in the last year.
The WSA, which comes out with short-term demand outlook twice in a year, expects the world’s steel demand to grow by 0.4% in the next year.
