World Steel Demand Improves

The World Steel Association has improved its 2009 forecast for the global industry after economic stimulus measures in China helped spur demand. In April, the group forecast a 14.1% fall in apparent steel demand for the year, but they are now projecting a decline of only 8.6% due to the strength in Chinese demand.

The association said, “China’s steel consumption was vital for the global outlook and it was the country’s exceptionally strong growth in demand that prompted the revision.”

China’s steel demand would likely expand by 19% this year to 526 million tons, but growth could drop to 5% next year as the impact of Beijing’s stimulus measures tapers off. The association said without China, which will account for 47.7% of the world’s apparent steel use this year, potential world demand would have fallen 24.4% in 2009.

On a global basis, apparent steel demand was expected to grow 9.2% next year to 1.2 billion tons, the association said. Apparent steel use reflects deliveries of steel to the marketplace from domestic producers as well as from importers. This differs from actual steel use, which takes into account steel delivered to or drawn from inventories.