Improvement in the steel market is possible only in 2017

According to the World Steel Association this year, global steel demand will fall 0.8 percent. A slight increase of 0.4 percent can be achieved next year.

The global market will be strongly influenced by a sustained slowdown in the growth of the Chinese economy, which may affect not only the price of steel products, but also financial flows and a slowdown in trade throughout the world. Also, low prices for oil and other types of raw materials have a negative impact on metallurgy.

In the CIS, demand is expected to decline by 7.4 percent this year, and is expected to grow by 4.6 percent in the future, driven by a recovery in demand from the mechanical engineering, chemical and energy industries. In Russia, there is an increase in demand in the energy, shipbuilding, machine-building and nuclear industries of the North-West region, including forgings of ZAO BRMK , which has proven itself as a reliable partner for these businesses.

Developing countries suffer not only from trade problems, but also from their own internal problems. Political uncertainty in Brazil contributed to a 16.7 percent decline in steel demand last year. This year it will fall by 8.8 percent. Growth is expected in Turkey and India, which could reach 5.4 percent. Overall, next year, demand in these countries will reach 30 percent of global demand.

The global steel market suffers from underinvestment and further weakening of the manufacturing sector. While 2016 will even see a drop in steel demand in China and slow growth in other regions such as NAFTA or the European Union, next year's steel demand growth will be more pronounced around the world, with the exception of China, the chairman said. Worldsteel Economics Committee.

Among the risk factors for the development of the global market are the slowdown in the Chinese real estate market, the problem of debt, uncertainty and caution in the financial markets and weak cash flow in many emerging markets.


The developed economies are also suffering from the worsening global economic situation, but the slow demand for steel will start to recover, and this year, and will be 1.7 percent, and next year, 1.1 percent. In the European Union, economic sentiment and investment conditions are starting to improve, but the uncertainty associated with the crisis and migration creates the risk of slow growth.

In the United States, demand is being stifled by low oil prices and a strong dollar, but a strong construction sector and improved labor market conditions could support steel demand growth to 3.2 percent this year and 2.7 percent in 2017.