The World Steel Association (Worldsteel) projected global steel demand will rise 1.3% in 2019, compared to the previous year in a report on Tuesday.
"Worldsteel forecasts global steel demand will reach 1.73 billion tons in 2019," said the group’s April 2018 Short-Range Outlook report, estimating that demand would grow 1% to 1.75 billion tons in 2020.
"In 2018, global steel demand increased by 2.1% (after adjusting for China induction furnace closures), growing slightly slower than in 2017," said the report.
It added that growth in 2019 and 2020 occur in a less favorable environment, with Chinese deceleration, a slowing global economy and uncertainty surrounding trade policies and political situation in many regions suggesting a "possible moderation in business confidence and investment."
Worldsteel predicted steel demand in developing economies except China would grow 2.9% and 4.6% in 2019 and 2020, respectively.
The association also forecasted that in 2019, steel demand would grow in China, the EU, while dropping in the U.S., Japan, and Korea.
Global auto production, which narrowed sharply in 2018, is expected to continue decelerating in 2019, the report said.
Meanwhile, growth in the construction sector would increase this year, noted in the report.
Al Remeithi, chairman of the Worldsteel Economics Committee, said: "In 2019 and 2020, global steel demand is expected to continue to grow, but growth rates will moderate in tandem with a slowing global economy."
"Uncertainty over the trade environment and volatility in the financial markets have not yet subsided and could pose downside risks to this forecast," he said.Worldsteel members represent approximately 85 percent of the world's steel production, including over 160 steel producers with nine of the 10 largest steel companies, national and regional steel industry associations, and steel research institutes. Anadolu Agency website contains only a portion of the news stories offered to subscribers in the AA News Broadcasting System (HAS), and in summarized form. Please contact us for subscription options.