Global steel demand is projected to rise in 2025 by 1pc when compared on the year to 1.889bn t, the Organisation for Economic Co-operation and Development's (OECD) said today in its latest steel outlook report.
This slight improvement reflects stronger demand prospects across OECD countries and a slower rate of decline in Chinese steel demand, the organisation said.
The implementation of stimulus policies by the Chinese government was also mentioned as a supporting factor which could potentially soften the negative impact of falling new residential investment in the country.
More developed markets, such as the EU and the US, are expected to see stronger recoveries thanks to lower interest rates and less restrictive monetary policies adopted by governments.
The outlook to 2030 forecasts slow growth across the globe with demand settling at 1.957bn t, representing a 3.6pc increase over the course of the next five years.
During this time Chinese steel demand is projected to decline steadily, while the rest of the world is set to post steady annual growth.
"Slower economic growth and the falling steel intensity of GDP are expected to keep Chinese steel demand on a declining path of 0.6pc per year, on average, during 2025-30," OECD said.
Additional sources of steel demand could come from emerging markets such as India, the Asean region and to a lesser extent the CIS region, the Middle East and Africa. Europe and North America are expected to experience more modest growth, since these are mature markets that will face more limited demand from infrastructure, investment and housing.
In regards to steel production global output is expected to increase at an average annual rate of 0.9pc until 2030, according to OECD data.
This will be led by growth in Africa, Asean, India and the Middle East, regions which are already experiencing rapid steelmaking capacity expansions. Other emerging economies are likely to follow this route as they aim to be more self-sufficient in steel production and to be able to export steel in the future, OECD said.
