The World Steel Association expects global steel production to increase by 0.5 percent in 2017. Continued weakness in investment globally is hindering a stronger recovery, although long-term prospects appear promising, largely due strength in the automotive and construction sectors. For 2017, a better-than-expected forecast for China, along with continued growth in emerging economies, will aid the global steel industry.
The US steel industry continues to face the threat of cheaper imports due in part to a stronger dollar and lower oil prices. Steel market conditions in the US have improved of late, driven by favorable developments on steel trade cases in the recent past. Steel prices recovered partially on the back of punitive trade actions that led to levy of tariffs on imports.
Steel demand in China is projected to decline 2.0 percent in 2017, and the International Monetary Fund projects China’s growth to slow down to 6.5 percent in 2017. Meanwhile, India is widely viewed as the next growth engine, due to growth in its construction and manufacturing sectors, rapid urbanization and structural reforms.
Steel demand in the EU is expected to increase moderately in 2017. This is positive for companies like ArcelorMittal, which generates almost half of its revenues from this region. United States Steel also has a significant presence in Europe.