Global steel demand expected to rise 2.3% this year: Report

ISTANBUL

Global steel demand is expected to increase 2.3% this year, according to a report released Tuesday.

World steel demand is forecast to grow 1.7% next year, said the World Steel Association.

While manufacturing is expected to lead the recovery, high interest rates are expected to continue to weigh on demand, it added.

Industry growth is expected to accelerate in most regions next year, but deceleration is expected in China, it said.

"In 2022, recovery momentum after the pandemic shock was hampered by high inflation and increasing interest rates, the Russian invasion of Ukraine, and the lockdowns in China," Maximo Vedoya, chair of the WorldSteel Economics Committee, said in a statement.

"As a result, steel-using sectors’ activity went down in the last quarter of 2022. This, combined with the effect of stock adjustments, led to worse than expected contraction in steel demand," he added.

The association said persistent inflation and high-interest rates in most economies will limit the recovery for demand this year, despite positive factors like China’s reopening, Europe’s resilience against an energy crisis and the easing of supply chain bottlenecks.