IISI: World steel demand to rise 8.9% in 2006

The International Iron and Steel Institute (IISI) has said that world steel demand is expected to rise 8.9 percent year on year from 1.029 billion metric tons in 2005 to 1.121 billion metric tons in 2006. The IISI also predicted a more moderate forecast of 5 percent growth in steel demand next year to reach 1.179 billion metric tons. “Reflecting on the current year, China and Asia have again dominated the world market for steel,” the IISI said in their statement, adding that increased spending on the infrastructure and construction sectors in India would drive up apparent steel use there by 10 percent this year. However, the largest increase is seen in China, clocking a 14 percent increase in 2006.

Apparent Steel Use

                 Million mts of finished steel     Change % year on year
                    2005   2006e   2007f            05-06     06-07   

EU (15)            139.4   150.0   147.7             7.6      -1.5
EU (25)            158.8   171.5   169.6             8.0      -1.1
Other Europe        29.3    32.1    34.0             9.5       6.0
CIS                 43.5    46.5    50.9             7.0       9.4
NAFTA              139.7   151.8   150.8             8.7      -0.7
S. America          32.3    36.0    38.6            11.6       7.1
Africa              22.4    24.6    25.7            10.0       4.4
Middle East         34.0    37.3    40.6             9.6       8.9
Japan               78.0    78.6    80.8             0.8       2.8
India               38.1    41.9    45.7            10.0       9.1
Rest of Asia
(exc. China)       117.8   118.5   121.8             0.6       2.8
Australia + NZ       7.9     7.8     7.9            -1.6       1.3

World (exc. China) 701.8   746.7   766.4             6.4       2.6
China              327.0   374.0   413.0            14.4      10.4
World            1,028.8 1,120.7 1,179.4             8.9       5.2