PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Paint and Coatings Industry News

Main News Page


Recovering Global Steel Demand May Hit Record

Friday, October 8, 2010

Comment | More

Global demand for steel may set a record by the end of 2011, after declining by 6.6% just last year, according to a new economic forecast by steel producers.

Steel demand had been on track to increase by 8.4% in 2010, but the World Steel Association has now revised that projection to 13.1% for 2010 and 5.3% in 2011, bringing total demand to a record 1,340 million metric tons (mmt) worldwide.

‘Steady and Stable Recovery’

“This improved outlook is due to a better-than-expected forecast for the developed economies—particularly the EU, NAFTA, and the CIS—as well as the continued strong rebound in most emerging economies,” said Daniel Novegil, chairman of the association’s Economics Committee, which authored the Short Range Outlook.

“This suggests a steady and stable steel recovery, and our current forecast does not foresee a double dip recession as feared by some."

The greatest increase for 2010 (31.3%) is expected to be in the NAFTA countries; Central and South America should see an increase of 28.2%; the C.I.S. countries, 26.5%.

China Increase Slows

Steel demand in China, which soared by 28.4% in 2009, should moderate to an increase of 6.7% in 2010. Excluding China, world demand for steel plummeted by 24.4% in 2009; in 2010, excluding China, world demand is expected to average 19%; in 2011, excluding China, 6.8%.

Still, while the forecast for China is for relatively low growth, its apparent steel use in 2011 will be 42% above that of 2007 and will account for about 45% of world apparent steel use.

Regional Outlooks

In the NAFTA region, the United States had a 36.2% reduction in apparent steel use in 2009. Aided by stock-building activities and a recovery in manufacturing, apparent steel use in the U.S. is expected to grow by 32.9% in 2010 and then 9.4% to 86.1 mmt in 2011—nearly 80% of the 2007 level.

For NAFTA as a whole, apparent steel use will grow by 31.3% and 8.7% in 2010 and 2011 respectively.

India's steel demand grew 7.5% during the global financial crisis and is expected to grow by 8.2% and 13.6% in 2010 and 2011, respectively. With 68 mmt of apparent steel use in 2011—32% higher than its 2007 level—India will become the third-largest steel consumer after China and the U.S.

Central and South America, which recorded a 23.6% decline in 2009, should see growth of 28.2% in 2010 aided by a strong rebound of 34.6% in Brazil. In 2011, the region's apparent steel use will grow by 9.1% to reach 47.6 mmt, a historical high for the region.

The EU economies saw a 35.7% reduction in their apparent steel use in 2009, with Spain, Italy, and the UK especially hard hit by the collapse of their construction sectors. However, the EU’s recovery now appears stronger than expected and the region will see an increase of 18.9% in 2010 in its apparent steel use.

Japan, which experienced a fall of 32.3% in apparent steel use in 2009, will see its steel use increase by 19.1% in 2010—much higher than expected and 14% higher than the 2007 level.

Apparent steel use reflects the deliveries of steel to the marketplace from the domestic steel producers as well as from importers. This differs from real steel use, which takes into account steel delivered to or drawn from inventories.

Caution Remains

Despite the optimistic outlook, Novegil remains cautious.

“Steel demand in the developed economies in 2011 will still be well below the pre-crisis peak level,” he said. “The recovery so far has been mainly driven by the inventory cycle and government stimulus packages whose effects are now fading out.”

Whether the recovery momentum will continue remains to be seen, Novegil said. “Recent economic indicators are giving us mixed signals, and developments in the remaining part of this year and early next year must be watched carefully."

   

Tagged categories: Market; Steel; Supply and demand; Trends

Comment Join the Conversation:

Sign in to our community to add your comments.

Clemco Industries Corp.
Global engineering-trusted solutions

For more than 70 years, Clemco has provided the highest quality blast equipment with a total commitment to comfort and safety.


Blastox/The TDJ Group, Inc.
Blastox - One Step
Lead Abatement

Don't waste $$ on added labor steps with other methods. Don't mix, meter or apply at the job-site. Avoid strict hazardous waste rules.
Let your painters paint!


Polygon
POLYGON - Temporary Humidity Control

We specialize in innovative climate control solutions for industrial painting, utilizing alternative energy sources and combining desiccants with heating or cooling.


Julbert, Inc.
XH Duty Dust Collectors

“More Suck For The Buck” Suction at 15” Static Pressure at Rated CFM Volume. Built Tough! Priced Right! Tel: 208-437-2100 Customerservice@julbertinc.com


NLB Corporation
VacLance cleans up as you do surface preparation

Add vacuum recovery to any NLB rotating water jet lance with a VacLance attachment and vacuum source. Model DM32283 works vertically, horizontally and in corners.


U.S. Zinc
Historic Reliability. Innovative Performance.

For 65 years, the success of U.S. Zinc has come from the quality of our people and our products. The protection properties of our zinc dust prolong the life of marine coatings, helping the world work™


Carboline Company
Submit your Resume Now
carboline.com/careers

Carboline is in need of people who are entrepreneurial, competitive, self-motivated, and have a winner's attitude. Click the above link for available opportunities.


International Bridge Conference
International Bridge Conference

Save the dates to attend the 2015 IBC. Four full days of educational sessions and 150 exhibits all in the City of Bridges. Click here for more information.


Minerals Research & Recovery

HIGH PERFORMANCE ABRASIVES


“Made in the USA!”

Why recycle waste from other countries? Go FASTER, CLEANER, at 1/3 THE COST with MR&R “All-American” Sharpshot®HP!!

WATCH THE VIDEO

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com