According to the World Steel Association (worldsteel), overall recovery after the economic crisis due to the natural disaster in Japan in March this year was stronger than expected. Economies in the emerging and developing countries showed a faster recovery compared to developed economies.
Automotive was the most affected sector and the construction sector seemed to be less affected. However, a strong recovery has been recorded in the automotive sector, while the recovery in the construction sector has been sluggish. Moreover, the full impact of the natural disaster in Japan on the global automotive industry is still to be seen.
Worldsteel also announced that global steel demand hit 1.284 billion mt in 2010, rising 13.2 percent on year-on-year basis. It is forecast that global steel demand will grow steadily by six percent to reach 1.440 billion mt in 2012.
Meanwhile, the overall steel demand in emerging economies was not severely affected by the economic crisis. The impact was felt in 2008, but average growth rates remained positive. The growth rate in emerging Asian countries was 6.1 percent in 2010 and is expected to continue at a moderate rate of 6.5 percent in 2011 and 2012. China's steel demand grew by five percent year on year in 2010 and is expected to maintain the same rate until 2012. Steel demand in India, Thailand, Malaysia and Vietnam are forecast to increase at two-digit growth rates in 2011.