The World Steel Association (worldsteel) has released an update of its Short Range Outlook (SRO) for 2022 and 2023. worldsteel forecasts that steel demand will contract by 2.3% in 2022 to reach 1,796.7 Mt after increasing by 2.8% in 2021.
In 2023 'steel demand will see a recovery of 1.0% to reach 1,814.7 Mt', says the report. ''The current forecast represents a downward revision over the earlier forecast, reflecting the repercussion of persistently high inflation and rising interest rates globally. High inflation, monetary tightening, and China’s slowdown contributed to a difficult 2022, but infrastructure demand is expected to lift 2023 steel demand slightly.''
''The prospect for 2023 depends on the impact of tightening monetary policies and central banks’ ability to anchor inflation expectations.''Máximo Vedoya, CEO of Ternium, and chairman of the worldsteel Economics Committee
Commenting on the outlook, Máximo Vedoya, CEO of Ternium, and chairman of the worldsteel Economics Committee, said: “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.”