According to Germany-based steel giant ThyssenKrupp, in the steel markets in Europe, the NAFTA region and Japan, demand this year will be higher than in 2009, mainly due to restocking, but will remain far below the levels of previous years, especially as the markets have calmed considerably in the summer months.
A significant increase in real consumption cannot be expected in 2010, especially not in Europe, said ThyssenKrupp. A further expansion in capacities worldwide means there is also a risk of rising European imports from third countries, especially China, where domestic demand growth has slowed in recent weeks. Steel consumption in the emerging countries is expected to grow further.
As SteelOrbis previously reported, according to the spring forecast of the World Steel Association (worldsteel), global steel demand is expected to increase by 11 percent this year; that corresponds to a crude steel output of around 1.4 billion metric tons. The significant cost increases for raw materials that have occurred to date will have to be reflected in higher steel prices, ThyssenKrupp said.
Despite the current weakness, demand for stainless steel flat products is expected to recover in all regions in 2010, with worldwide growth of 18 percent forecast for this year. The markets of Western Europe and North America are expected to expand by 22 percent and 28 percent respectively. In China the pace of growth is expected to slow to 12 percent, while an increase of 22 percent is forecast for the rest of Asia.