AS per OECD Steel Committee, the outlook
for the global steel industry is promising, with global demand forecast
to increase by an annual 6% in both 2011 and 2012. The meeting was attended
by representatives from OECD countries as well as Argentina, Brazil,
China, India, Russia, Malaysia, Romania, Chinese Taipei and Ukraine.
The Report states that although recovery has been uneven, the world steel
industry is recovering at a faster pace than many expected at the onset of
the financial and economic crisis in late 2008. After a strong rebound in
2010, the recovery in global steel demand will slow this year, in line with
slower growth in the world economy. Demand recovery in many advanced economies
in particular remains lacklustre. In contrast, demand in many emerging economies
continues to increase steadily, supported by infrastructure investments,
industrialisation and further urbanisation. This development is expected
to continue with estimated demand increases of about 6% in both 2011 and
2012.
According to the World Steel Association, in 2010 world steel demand increased
by 13.2%, supported by increasing production activity in industrial sectors.
Automotive production, in particular, grew very strongly in advanced as well
as developing countries. However, construction activity (where around half
of the world’s steel is used) remains sluggish in many economies, dampening
the pace of demand growth. Demand in China and other emerging economies has
surged above pre-crisis levels, while in many advanced countries demand has
yet to fully recover to these levels.
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