WSA: global steel demand could fall 2% in 2022 and rise 1% in 23

During 2022, global steel demand is likely to fall by 2.3% yoy to almost 1.8 billion tons, and in 2023 there may be a growth of 1% yoy, with the volume reaching 1.81 billion tons , according to World Steel. The Association (WSA) predicted in its latest short-term forecast for 2022 and 2023 on October 19.

The WSA's outlook for the year-on-year decline in global steel demand this year reflects "the effects of persistently high inflation and rising interest rates around the world," but demand from infrastructure construction could marginally boost steel demand in 2023, according to the association. .

“High energy prices, rising interest rates and falling confidence have led to a slowdown in the activity of sectors that use steel,” Maximo Vedoja, chairman of the economic committee of worldsteel, quoted the forecast. “As a result, our current growth forecast for global steel demand has been revised down from our previous forecast,” he added.

In April, the WSA forecast that global steel demand could rise 0.4% this year and 2.2% in 2023, according to Mysteel Global.

As for China, the country's steel demand could fall by 4% in 2022 compared to the same period last year due to the impact of the COVID-19 outbreak and the weakening real estate market, according to the WSA. And in 2023, "new infrastructure projects (China) and a moderate recovery in the real estate market could prevent a further decline in steel demand," the WSA noted, saying that steel demand in China in 2023 could remain flat.

Meanwhile, the improvement in steel demand in the developed world has slowed significantly this year due to "persistent inflation and prolonged supply-side bottlenecks," the WSA notes.

In the European Union, for example, steel demand could fall 3.5% year-on-year this year due to high inflation and the energy crisis. The WSA estimates that steel demand in the region may continue to decline in 2023 due to adverse winter weather or further power outages.

According to the announcement, steel demand in the developed world will contract by 1.7% this year and increase by a modest 0.2% in 2023, compared to a 16.4% year-on-year growth in 2021.