Prospects for global metallurgy in the coming years

The World Steel Association (Worldsteel) outlined the short-term outlook for the steel industry for 2015-2016, according to which steel consumption in the world will slightly increase, by 0.5 percent in 2015 to 1,544 million tons. In addition, global steel demand expects stronger growth, up 1.4 percent to 1,565 million tonnes, in 2016.

Major structural changes in the global economy, combined with a slowdown in China, will lead to a slowdown in growth. Geopolitical instability and crisis situations in some parts of Europe continue to oppress the global metallurgy. However, the impact of these factors will be offset by encouraging developments in other countries.

Emerging economies such as India are currently the most promising market, which will significantly increase activity in the period 2015-2016. Steel use in India is expected to grow by 6.2 and 7.3 percent in 2015 and 2016, respectively. Growth rates in India will be the highest among the leaders in steel use. Significant growth in the use of steel products is expected in some countries in the MENA and ASEAN regions.

However, this positive sentiment will not offset the slowdown in the Chinese market. Steel demand in the country will continue to record negative growth of -0.5 percent in 2015, but the steel demand situation may gradually improve in China in 2016, according to the report.

Steel demand in developing countries (excluding China) is expected to rise 4 percent in 2016, after rising 2.4 percent in 2015. The United States, which recorded 11.7 percent growth in steel product use last year, will have negative growth of -0.4 percent in 2015. However, steel demand could recover 0.7 percent in 2016.