The World Steel Association has revised down its 2024 demand outlook, saying it now expects the world to require 1.75 billion tons this year.
The association released an update of the Short Range Outlook (SRO) for 2024 and 2025. Worldsteel forecasts that this year global steel demand will drop further by 0.9 percent to 1,751 Mt. After three years of decline, they expect to see a broad-based recovery in the world excluding China in 2025. Global steel demand is forecast to finally rebound by 1.2 percent in 2025 to reach 1,772 Mt.
“2024 has been a difficult year for global steel demand as the global manufacturing sector continued to grapple with persistent headwinds such as declining household purchasing power, aggressive monetary tightening, and escalating geopolitical uncertainties. The ongoing weakness in housing construction, which is driven by tight financing conditions and high costs, has further contributed to the sluggish demand for steel,” said Martin Theuringer, German Steel Association managing director and chair of the worldsteel economics committee.
Most of the downward revision fall on China, where demand is expected to be three percent this year due to the ongoing troubles in its real estate sector. Demand in developed economies, is expected to fall 2.0 percent as major steel-using economies like the U.S., Japan, Korea and Germany face significant declines, said Theuringer.