How did steel demand change after the Covid-19 pandemic?
The Covid-19 pandemic has indeed had a significant impact on all sectors across the world. While steel demand increased in some regions, it decreased in others. So how will steel demand change in the post-pandemic period? In this article, we will look at the global and regional steel demand forecasts. The World Steel Association (worldsteel) published its Short Range Outlook (SRO) for steel demand for 2023 and 2024 in April 2023. According to this, global steel demand will grow by 5.5% to 1,824.6 million tonnes in 2023. This growth will be supported by the manufacturing sector leading the recovery and the construction sector remaining strong.
In 2024, global steel demand will grow by 1.7% to 1,854.0 million tonnes. However, high interest rates and inflation risks will continue to put pressure on steel demand. Looking at the regional level, different trends are observed.
The European Steel Association (Eurofer) announced that steel demand in the European Union (EU) countries started to decline from the second quarter of the year and that the loss in demand volume is expected to reach 3.5% by the end of the year. In addition, a 1.9% drop in demand is expected in 2023. Eurofer cited supply constraints, high raw material prices, and supply chain problems caused by the pandemic as the reasons for this situation.
It is important to note that these forecasts are subject to change as the global economy continues to recover from the pandemic and various factors influence steel demand.
