Global growth in steel demand

Global growth in steel demand

According to International Iron and Steel Institute's (IISI) reports, the global steel demand is forecasted to grow by 6.4% compared to 2002 and reach 884 million tons this year. The IISI stated that Chinese consumption alone will amount to 257 million tons, up by 21.7% over 2002. The global steel consumption of finished steel is expected to increase by 5.8% to 936 million tons in 2004. Chinese consumption will maintain to improve by 12.8% in 2004 to 290 million tons. Furthermore, a global recovery will be experienced with China in the world. However, a sharp decrease can be occured in China's automotive and technology sector, in such a case domestic steel consumption may change. The analysts are not predicting an economic recovery in Europe. However, US and Japan expect a growth in economy. Steel demand in 15 member states of the EU will amount to 139 million tons this year with an increase of 0.4% compared to 2002. Demand is forecasted to increase to 143 million tons next year, up by 2.9% over this year. Steel demand in NAFTA countries (US, Canada and Mexico) will drop by 2.6% in 2003 to 129 million tons. Asian demand is expected to reach 224 million tons this year, up by 3.1%. South American steel demand will raise by 1.3% to 28 million tons in 2003 however will ramp by 8.1% to 30 million tons in 2004. The world's demand for finished steel is expected to reach 1'041 million tons by 2007.