Worldsteel Forecasts Global Steel Demand Will Contract Again in 2016
April 13 2016 - 8:43AM
Dow Jones News
By Alex MacDonald
LONDON--Global steel demand is forecast to contract for a second
consecutive year in 2016 before recovering the following year.
China, the world's largest steel consumer, will continue to weigh
on global demand, shrinking in both years as it struggles to boost
economic growth, figures from the World Steel Association showed
Wednesday.
Global steel demand is forecast to shrink 0.8% to 1,488 million
tons this year before rising 0.4% to 1,494 million tons next year,
aided by a recovery in steel demand from the European Union and
countries that make up the North America Free Trade Agreement
region. Last year, global steel demand fell 3%.
"The economic environment facing the steel industry continues to
be challenging with China's slowdown impacting [steel customers]
globally," said Narendran, Chairman of the Worldsteel Economics
Committee.
The short range forecast was provided by the World Steel
Association, which represents steelmakers, including ArcelorMittal
(MT), that account for about 85% of the world's steel supply.
China, the world's largest steel consumer, is forecast to report
a 4% drop in steel demand this year and 3% next year while its
share of global steel demand is forecast to drop to 42% from 45% in
2015.
Steel demand outside China will continue to grow by 1.8% in 2016
and accelerate to 3% in 2017.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
April 13, 2016 08:28 ET (12:28 GMT)
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