Global steel demand in 2022 to rise by 0.4%, World Steel forecasts

World Steel Association (WSA) forecasts global steel demand to rise 0.4% y-o-y to 1.840 billion tons in a short-term forecast. It is shown by the data on the association’s website.

In 2023, the steel demand could see further growth of 2.2%, to 1.881 billion tons y-o-y.

“This Short Range Outlook is issued in the shadow of the human, and economic tragedy following the Russian invasion of Ukraine. We all wish for as rapid, and peaceful an end to this war as possible”, commented Mr Maximo Vedoya, Chairman of WorldSteel Economic Committee.

The impact of Russian aggression will be felt around the world through higher prices for energy, and goods, especially raw materials for steel production, as well as continued disruptions in supply chains. In addition, financial market volatility, and heightened uncertainty will undermine investments.

Such global spillovers from the war in Ukraine, along with the low growth in China, point to reduced growth expectations for global steel demand in 2022.

The outlook for 2023 is highly uncertain. Association assumes that the confrontation in Ukraine will come to an end in the course of 2022, but the sanctions on Russia will largely remain.

In China rising steel demand will significantly slow down the decline of steel consumption for construction. In the US, and EU, it may slow down further due to inflationary pressure, which is aggravated further by events around the Ukraine.

As GMK Center reported earlier, global crude steel output increased by 3.7% y-o-y, to 1.95 billion tons. Ukraine increased crude steel production by 3.6%, to 21.4 million tons. The country ranked 14-th in the global rating of 64 steel producers.