On April 18, the World Steel Association (worldsteel) said that apparent steel use is forecast to increase by 5.9 percent to 1.36 billion mt in 2011, following 13.2 percent growth in 2010. In 2012, it is predicted that world steel demand will grow further by six percent to reach a new record of 1.44 billion mt.
According to worldsteel, this forecast suggests that by 2012 steel use in the developed world will still be at 14 percent below the 2007 level, whereas in the emerging and developing economies it will be 38 percent above. In 2012, the emerging and developing economies will account for 72 percent of world steel demand in contrast to 61 percent in 2007.
Commenting, Daniel Novegil, chairman of the worldsteel economics committee, said, "2010 saw a steady recovery of steel demand which began in the second half of 2009 driven by stimulus packages globally, the resilience of emerging economies and an overall market recovery. In 2011, we expect to see a further 5.9 percent growth in world steel demand.
Our forecast is based on a stable and steady recovery of the world economy. There are, however, uncertainties deriving from financial fragilities in Europe, unrest in some oil producing countries in the Middle East and the earthquake in Japan, which could have a negative impact on the recovery and thereby affect steel demand. At our worldsteel board meeting last week the industry again expressed its condolences and support to its Japanese members."