Global demand for steel to rise 3.2 per cent

The economic crisis in Europe and the sluggish demand for steel in China have started impacting the global steel industry. The global growth forecast for steel consumption stood lowered by the World Steel Association (WSA) to 2.1 per cent during 2012 as against 6.2 per cent in 2011.

It added however, that things might improve marginally in 2013 with the world steel demand growing by 3.2 per cent at 1.45 billion tonne (bt).

According to Hans Jurgen Kerkhoff, chairman of the World Steel Economics Committee, earlier some signs of recovery were evident, with a better second half performance expected in 2012.

However, the economic situation had deteriorated due to the debt crisis in euro zone and slowdown in China and the factors had weighed heavily on business confidence and manufacturing activities. He added, as a result momentum in both developed and emerging part of the world had weakened considerably.

The steel demand in China was expected to rise 2.5 per cent to 639.5 million tonne (mt) in 2012 against 6.2 per cent growth in 2011. The government stimulus measures, however, might improve the economic situation and would likely to push up apparent steel use in China by 3.1 per cent at 659.2 mt in 2013.

WSA expects the steel demand in India to slow down to 5.5 per cent in 2012 and 5 per cent in 2013. Similar growth projections were also expected by Indian experts.