Short-term forecast of the World Steel Association

Steel demand in China will grow 7.8% to reach 900.1 million tons, according to the World Steel Association's Short Term Forecast (SRO) released today. The rest of the world is expected to grow 0.2% to 874.9 million tonnes.

SRO predicts that steel demand in China will grow by 1%, while demand for steel in the rest of the world will grow by 2.5%, driven by 4.1% growth in emerging and emerging economies, excluding China ...

In 2019, global steel demand will grow by 3.9% to 1.775 million tonnes and another 1.7% in 2020, reaching 1805.7 million tonnes.

Syed Al Remeiti, Chairman of the Committee on the World Steel Economy, told the world media, gathered today at the General Assembly of the World Steel Association at the Quinta Real Hotel in Monterrey, Mexico, that steel demand in China is growing strongly this year due to with strong real growth. the real estate sector and despite the lowest expected GDP growth in the country since 1992.

“China surprised us,” said Worldsteel CEO Dr. Edwin Basson.

According to Dr. Basson, the three main negative risks for the global steel industry in the future are based on the uncertainty of the terms of international trade. He highlighted the growing protectionist notices in a number of countries; government support measures introduced in the construction and automotive industries; and consumer uncertainty.

“In China, we are seeing interesting support from the construction sector as well as legislation changing the strength of the material in construction practices. In some markets in Southeast Asia, similar support has been provided to those moving to urban areas. The risk is that if the government quickly turns off the tap, but this is unlikely when we consider this, even if we live in a pessimistic environment, if you look at what is happening on the ground, you will find amazing reliability, ”says the doctor. Basson added. "Consumers are looking for more clarity, more confidence."

Yoo Yeon, chairman of the HBIS Group, echoed Dr. Basson's remarks about the situation in China and said that although there are currently tensions between the United States and China, the situation is under control.

Despite the fact that the global economic situation was not particularly bright, Dr. Yong said that the demand for steel was nevertheless high. He argued that the Chinese economy did well in 2019, with strong steel demand indicators driven by infrastructure spending and government support for the manufacturing sector.

There is still plenty of room for infrastructure investment in China, according to Dr. Yong. “China's economy remains robust and growth will continue as we still eat