STEEL MARKET OUTLOOK: Global steel demand to ramp up in 2017

Metal Bulletin Research (MBR) examines the lag in the recovery of global steel consumption, and revises its outlook.

Earlier this year, MBR predicted that metals demand would accelerate and that steel demand would recover, after falling last year. But the recovery in finished steel consumption, of about 9 million tonnes, would fail to overcome what we estimated at the time was a 28 million-tonne reduction (-2%) in demand the year before. Our forecast of a comparatively modest revival in demand was based on an expectation that demand in China would reduce for a third consecutive year. However, the bearishness on China has been challenged all year by the fascinating and unexpected developments in that country. The forecast decline has clearly happened, although seven-months’-worth of data show that this was mainly because of a steep decline at the start of the year. July is a seasonally depressed month for much of the northern hemisphere, but Chinese consumption actually grew year-on-year by just under 2% – its fastest growth for a couple of years. However,...

Published

Metal Bulletin Research

August 22, 2016

14:28 GMT

London