World steel demand to grow by 3.2% in 2013

Global steel demand is expected to grow by 3.2 per cent in 2013 but it would depend on recovery in key markets like China and euro-zone economies, the World Steel Association said on Thursday.

For the current year, it has forecast a growth of 2.1 per cent, which is considerably lower than that of 6.2 per cent growth of 2011.

Announcing the outlook, World Steel Economics Committee’s Chairman, Hans Jurgen Kerkhoff, said: “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“.

World Steel is one of the largest industry associations across the globe and represents 170 steel producers (including 17 of the world’s 20 largest steel companies). Its members produce around 85 per cent of the total global steel.

According to the outlook, demand in China —— the growth engine for world steel consumption —— is expected to increase by 2.5 per cent to 639.5 MT during the current year. The East-Asian country, which had reported a growth of 6.2 per cent in 2011, has been witnessing a worse-than-expected slowdown in demand this year.

However, World Steel said: “Government stimulus measures are likely to moderately improve the economic situation”, and forecast 3.1 per cent growth in Chinese steel consumption for 2013.

For India, it said 5.5 per cent growth in demand is expected during the current calendar year and it will come down further to 5 per cent in 2013, “due to both unfavourable domestic and external economic conditions“.

Apparent steel use in India is estimated to be at 73.6 MT in 2012 and 77.3 MT in 2013, World Steel said.

For the European Union, which represents 27 countries, World Steel said apparent steel usage is expected to decline by (—) 5.6 per cent in 2012 and the decline would be most visible in Spain and Italy.

For 2013, it has forecast a 2.4 per cent growth for euro zone—27 countries and said: “Steel demand in Europe, however, remains at a depressed level and economic growth between countries continues to be uneven.”