IISI expects 7.3 percent increase in steel demand in 2006

International Iron and Steel Institute (IISI) forecasts total use of finished steel products continues to show strong growth in all regions of the world. Total steel demand is expected to increase 7.3 percent to 1.087 billion metric tons in 2006. The largest factor in this growth is the influence of China. Despite a slowdown in China's steel demand, double digit growth in China is still predicted at 13 percent for 2006 and 12.1 percent for 2007. IISI forecasts steel demand in China will increase 13 percent to 356 million metric tons in 2006, accounting for 32 percent of total steel demand. India is also expected to show a high steel demand growth of 8 percent for 2006 and 2007. In other areas of the world, growth is expected to be around 4.7 percent or 33 million metric tons in 2006 and 2.7 percent in 2007. In the European Union, apparent steel use fell 4.6 percent in 2005 due to the reduction in steel stocks. However, IISI forecasts an increase of 3.9 percent for 2006 and 1.5 percent for 2007. IISI indicates that the economic growth in the US will increase apparent steel use 5 percent in 2006 and 1.7 percent further in 2007. Growth in the construction and automotive sectors is underpinning an anticipated 3.2 percent growth in Russia's steel use in 2006 with an estimated growth of 1.6 percent in 2007. Similar growth rates are expected for the Ukraine. After a slowdown in Brazilian market during 2005, the steel market in Brazil is predicted to recover in 2006 with a 9.5 percent increase in steel use. Japanese steel market is expected to record a growth of 3.3 percent in apparent steel demand in 2006. The whole Asia-Pacific region will register a 3.9 percent growth in steel use during 2006 and a 2.1 percent increase in 2007.