Global Steel Demand shows modest growth with a 1.8% increase in 2023

The World Steel Association (WSA) has revised its earlier projections, stating that global steel demand is anticipated to increase by 1.8% in 2023. This growth is attributed to on-going infrastructure projects in China, which is the largest consumer of steel globally. This revised forecast is a downgrade from the initial April estimate, which had predicted a 2.3% rise in steel consumption this year. The impact of high inflation and interest rates has been a significant factor affecting steel demand, according to Maximo Vedoya, chairman of the WSA economics committee. The tightening monetary policy is expected to slow down the recovery of steel demand in advanced economies until 2024. Looking ahead to 2024, global steel demand is projected to grow by 1.9%, reaching 1.85 billion metric tons. In 2022, steel demand had declined by 3.3%. China, responsible for half of the world's steel consumption, is expected to experience a 2% increase in steel demand in 2023. The outlook for the following year remains uncertain, with hopes that the situation in China's property market will stabilise in the latter part of 2023. Globally, high-interest rates have impacted demand, particularly in the construction and consumer durables sectors, while the recovery in auto production is anticipated to continue. Steel demand is forecasted to decline by 5.1% in the European Union and Britain, 1.1% in the United States, and 2% in Japan this year. However, these regions are expected to experience a rebound in 2024, with growth rates of 5.8%, 1.6%, and 0.6%, respectively.