The World Steel Association (worldsteel) in its latest update of its Short Range Outlook (SRO) for 2022 and 2023 has forecasted that global steel demand will contract by 2.3% in 2022 to reach 1,796.7 Mt after increasing by 2.8% in 2021. In 2023 steel demand will see a recovery of 1.0% to reach 1,814.7 Mt. the latest forecast shows a downward revision over the earlier forecast, reflecting the repercussion of persistently high inflation and rising interest rates globally. The 2022 demand may dampened with high inflation, monetary tightening, and China’s slowdown contributed, though infrastructure demand is likely to lift 2023 steel demand slightly.
As per the latest outlook, India’s steel demand will show high growth on the back of strong urban consumption and infrastructure spending, which will also drive demand for capital goods and automobiles among other things, despite global headwinds. In the ASEAN region, steel demand witness a slow start of recovery from the pandemic, with the recovery of construction lagging. However, in 2022, the region’s steel demand has been showing strong growth as governments are pushing for infrastructure projects. Particularly strong growth in steel demand is forecasted in Malaysia and The Philippines.
Worldsteel also said steel demand in China contracted by 6.6% in the first eight months of 2022. For the whole year, steel demand is likely to fall by 4.0% with the low base effect of the second half of 2022. In 2023, new infrastructure projects and a mild recovery in the real estate market could prevent further contraction of steel demand. Steel demand in 2023 is likely to remain flat under the assumption that small new stimulus measures are to be introduced and lockdown measures will be largely removed in the later part of 2022.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: