The World Steel Association (Worldsteel) recently released an outlook report, which presents a mixed bag for global steel demand.
Demand in China will continue to contract but at a slower rate than in 2015, when a five-percent decrease was seen. Steel demand in developed economies is projected to increase by 0.2 percent in 2016 and by 1.1 percent in 2017.
The best news comes from emerging and developing economies, excluding China, where steel demand is expected to expand by 2.0 percent in 2016 and 4.0 percent in 2017.
Put it all together and Worldsteel projects a global increase of 0.2 percent for 2016 and of 0.5 percent in 2017. It’s a modest increase, but it follows a contraction of 3.0 percent globally in 2015.
Weakness in investments globally are holding back a stronger steel demand recovery, according to the Worldsteel report. The report expects the slight growth momentum now seen to remain weak for the time being due to the continued rebalancing in China and weak recovery in the developed economies.
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