According to the data released by the International Iron and Steel Institute (IISI), 2008 will be a strong year for the steel industry with global apparent steel consumption rising from 1.202 million mt in 2007 to 1.282 mt in 2008, i.e. an increase of 6.7 percent. In addition, projections for 2009 suggest a global growth rate of 6.3 percent.
Commenting on the predictions, IISI chairman Ku-Taek Lee declared, "The underlying assumption behind this forecast is that although some weakening in the US and EU economies is expected, demand for steel will remain healthy thanks in part to the emerging markets which will maintain their own dynamism."
According to the IISI forecast, the BRIC countries (Brazil, Russia, India and China) will lead the growth in the steel industry in 2008. The four countries in question are expected to see a rise of 11.1 percent in apparent steel consumption in 2008 and an increase of 10.3 percent in 2009.
China's apparent steel consumption is expected to increase by 11.5 percent in 2008 and 10.0 percent in 2009. On the other hand, India is expected to see an increase of 8.9 percent in 2008 and 12.1 percent in 2009.
One of the fastest growth rates is expected to be seen in the Russian market, where the IISI is forecasting an increase of 10.2 percent for 2008 and 11.2 percent for 2009.
Brazil's apparent steel consumption is expected to increase by 10.3 percent in 2008 and 8.9 percent in 2009.
The EU is expected to see an increase of 1.6 percent in 2008 and 2.3 percent in 2009.
Apparent steel consumption in the NAFTA Region is expected to see negative growth of minus 9.1 percent due to worsened economic conditions, inventory liquidation and decreased imports.