Global Steel Consumption to Rise 6.7% in 2008
Modest increases seen in the U.S., EU for the next two years
Modest increases seen in the U.S., EU for the next two years
The International Iron and Steel Institute is predicting that global steel consumption this year will total 1.28 billion metric tons, a 6.7% rise over the 1.2 billion metric tons consumed in 2007. The Institute also projected that global steel consumptions will grow at a 6.3% rate in 2009.
According to IISI chairman Ku-Taek Lee, chairman and CEO of South Korea’s Pohang Iron & Steel Co.: “The underlying assumption behind this forecast is that although some weakening in the U.S. and EU economies is expected, demand for steel will remain healthy thanks in part to the emerging markets which will maintain their own dynamism.”
For the entire NAFTA region, IISI reports 2007 steel consumption exhibited “negative growth” (i.e., a decline) of -9.1%, because of overall economic stagnation, inventory liquidation, and declining imports. The Institute predicts 2008 will result in economic stabilization in the region, leading to a 1.9% increase in steel consumption in 2008 and a further 1.0% rise in 2009.
The IISI forecasts that steel demand in the European Union increase just 1.6% in 2008, and 2.3% in 2009.
Brazil, Russia, India, and China — the BRIC economies — will lead global steel consumption, again, with an expected increase of 11.1% for 2008 and 10.3% for 2009. However, IISI is predicting that rising steel demand in other emerging countries over the next two years will narrow the difference in consumption rates between the BRIC nations and the rest of the world.
IISI predicts China’s steel consumption is seen growing by 11.5% in 2008 and 10.0% in 2009, and thus will be credited with 35% of global steel consumption this year. The Institute predicts this share will increase to 36.7% of world steel consumption by 2009. For India, the forecast calls for steel consumption to increase by 8.9% this year, and 12.1% in 2009.
Russian steel consumption will increase 10.2% in 2008 and 11.2% in 2009, on demand led by the country’s energy and construction sectors. Brazilian steel consumption is seen increasing by 10.3% in 2008 and 8.9% for 2009, led by growth in the automotive, construction, and engineering markets.
According to IISI chairman Ku-Taek Lee, chairman and CEO of South Korea’s Pohang Iron & Steel Co.: “The underlying assumption behind this forecast is that although some weakening in the U.S. and EU economies is expected, demand for steel will remain healthy thanks in part to the emerging markets which will maintain their own dynamism.”
For the entire NAFTA region, IISI reports 2007 steel consumption exhibited “negative growth” (i.e., a decline) of -9.1%, because of overall economic stagnation, inventory liquidation, and declining imports. The Institute predicts 2008 will result in economic stabilization in the region, leading to a 1.9% increase in steel consumption in 2008 and a further 1.0% rise in 2009.
The IISI forecasts that steel demand in the European Union increase just 1.6% in 2008, and 2.3% in 2009.
Brazil, Russia, India, and China — the BRIC economies — will lead global steel consumption, again, with an expected increase of 11.1% for 2008 and 10.3% for 2009. However, IISI is predicting that rising steel demand in other emerging countries over the next two years will narrow the difference in consumption rates between the BRIC nations and the rest of the world.
IISI predicts China’s steel consumption is seen growing by 11.5% in 2008 and 10.0% in 2009, and thus will be credited with 35% of global steel consumption this year. The Institute predicts this share will increase to 36.7% of world steel consumption by 2009. For India, the forecast calls for steel consumption to increase by 8.9% this year, and 12.1% in 2009.
Russian steel consumption will increase 10.2% in 2008 and 11.2% in 2009, on demand led by the country’s energy and construction sectors. Brazilian steel consumption is seen increasing by 10.3% in 2008 and 8.9% for 2009, led by growth in the automotive, construction, and engineering markets.
