Global steel demand to drop 2.3% in 2022

According to the World Steel Association’s Short Range Outlook (SRO) for 2022 and 2023 steel demand will decline by 2,3% in 2022 after increasing by 2.8% in 2021. In 2023 steel demand is expected to recover only slightly by 1,0%.

The current forecast represents a downward revision over the earlier forecast. According Mr. Máximo Vedoya, CEO of Ternium, and Chairman of the worldsteel Economics Committee:

“the global economy is affected by persisting inflation, US monetary tightening, China’s economic deceleration, and the consequences of Russia’s invasion of Ukraine. High energy prices, rising interest rates, and falling confidence have led to a slowing in steel using sectors’ activities. As a result, our current forecast for global steel demand growth has been revised down compared to the previous one. The prospect for 2023 depends on the impact of tightening monetary policies and central banks’ ability to anchor inflation expectations. Particularly the EU outlook is subject to further downside risk due to the high inflation and the energy crisis that have been exacerbated by the Russia-Ukraine war”

Infrastructure spending is expected to lift 2023 demand, however, it is unlikely to see any significant rebound due to weak spending from the real estate sector.