World Economy

Global Steel Demand to Grow 7 Percent

Global steel demand has been revised to 1,622.1 MT in October, an increase of 87 MT.Global steel demand has been revised to 1,622.1 MT in October, an increase of 87 MT.

It is rather reassuring to know that steel industry has been faring better in the past six months as the short range outlook for global steel demand in 2017 that was placed at 1,535.2 metric tons in April has been revised to 1,622.1 MT in October, an increase of 87 MT in the current year.

For 2018, the forecast at 1,548.5 MT has been revised to 1648.1 MT, an increase of 100 MT. The implicit growth in steel demand is substantial, HSN reported.

Last year the global steel consumption was at the level of 1,515.9 MT. Thus in the current year, the global steel demand is likely to grow by 7%.

Last year China comprised 45% share in global steel consumption. In the current year, the projected steel consumption in China at 765.7 MT takes around 47.2% share in global consumption. Compared to actual consumption of 681 MT of steel by China in the previous year, the current year’s projection puts the growth rate at 12.4% on nominal basis.

India consumed 83.5 MT of steel in 2016 and is projected to consume 87.1 MT and 92.1 MT of steel at annual rate of 4.3% and 5.7% in the current year and next. Indian economy projected to grow at 7.3% and 7.5% in 2017 and 2018, respectively would continue to bank on Infrastructure and construction sector growth of 3.6% (annual average), automobile growth rate of 8.1% (annual average) and engineering and fabrication growth rate of 2.9% (annual average).

US with an annual steel demand of 96.2 MT and 97.3 MT in 2017 and 2018 would continue to occupy the second position in steel consumption after China till 2018.

The global economy has been projected with a fair amount of “cautious optimism”. US economy is projected with near-solid fundamentals with firming up of recoveries in Germany, France, Spain and East Europe and ongoing reforms in the developing economies that would bring in higher growth and development opportunities.

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