Global steel demand is expected to decline for three consecutive years, recovery delayed until next year
On October 14, the World Steel Association (WSA) revised its global steel demand forecast, indicating that worldwide demand is set to decline for the third consecutive year. This adjustment comes amid ongoing challenges in manufacturing and economic growth, which have continued to hinder the steel market.
According to a report by Reuters, the WSA initially projected a 1.7% increase in global steel demand for 2024 back in April. However, the latest outlook now predicts a decline of 0.9%, bringing total demand down to 1.75 billion tons.
“Global manufacturing is grappling with persistent adverse factors,” stated Turinger, Chairman of the WSA Economic Committee. “We foresee 2024 as a challenging year for global steel demand, and we have notably lowered the outlook for steel demand in most major economies, including China.”
The WSA has pushed back its estimates for a recovery until next year, when demand is expected to rebound by 1.2% to reach 1.77 billion tons. The association’s members account for approximately 85% of global steel production.
As the leading producer and consumer of steel, China is facing significant challenges, particularly in its real estate sector, which has led to continued low demand. The WSA estimates that steel demand in China will decrease by 3% this year, followed by another 1% decline next year.
In contrast, India is projected to be the most significant driver of growth in steel demand, with an expected surge of 8% in 2024, followed by an additional 8.5% increase in 2025.
