Steel demand grows 5.8% in 2021
The World Steel Association (worldsteel) forecasts that steel demand will grow by 5.8% in 2021 to reach 1,874.0 million tonnes (Mt), after declining by 0.2% in 2020. In 2022 steel demand will see further growth of 2.7% to reach 1,924.6 Mt.
The current forecast assumes that the ongoing second or third waves of infections will stabilise in the second quarter and that steady progress on vaccinations will be made, allowing a gradual return to normality in major steel-using countries.
The report also suggested that expectations take into account that steady progress will be made in vaccines, allowing a gradual return to normalcy in countries that use steel.
“despite the disastrous impact of the pandemic on lives and livelihoods, the global steel industry was fortunate enough to end 2020 with only a minor contraction in steel demand” the report continued.
This was due to a surprisingly robust recovery in China (the world’s largest producer and consumer of steel) , with growth of 9.1%. In the rest of the world steel demand contracted by 10.0%.
In addition, the report predicts a strong recovery in steel demand in the coming years in both developed and developing economies.
This is supported by pent-up demand and the government’s recovery programs in some countries.
For most advanced economies, the report indicated that a return to pre-epidemic levels of steel demand will take a few years.
Also, the report predicts that the auto sector will recover strongly in 2021, and the recovery will be driven by an increase in the use of personal transportation.
This is due to safety concerns and increased household cash savings.
Also, during the year 2020, the steel-based construction business is mainly affected.
In addition to withdrawing financial resources from investment in infrastructure to support epidemic support programs.