Global steel demand set to rise: Report

By Tuba Sahin

ANKARA (AA) - The World Steel Association (Worldsteel) on Tuesday forecast that global steel demand will grow on an annual basis in 2018 and 2019.

"Worldsteel projects global steel demand will reach 1.66 billion tons in 2018, an increase of 3.9 percent over 2017," said the group’s October 2018 Short-Range Outlook.

It said next year demand is expected to rise 1.4 percent year-on-year to 1.68 billion tons.

The report underlined that rising trade tensions and volatile currency movements increased uncertainty this year.

Turkey's steel demand is forecast to contract in 2018 due to currency fluctuations, the report said.

But "the government’s stabilization measures and a consequent return to the competitiveness of the manufacturing sector is expected to help recovery in 2019," it said.

Steel demand growth in China, the world's biggest steel user and producer, is projected to decelerate in the absence of stimulus measures, the report added.

"Continued economic rebalancing efforts and toughening environmental regulations will lead to deceleration of steel demand toward the end of 2018 and 2019," it said.

Worldsteel members represent approximately 85 percent of the world's steel production, including over 160 steel producers with nine of the 10 largest steel companies, national and regional steel industry associations, and steel research institutes.