The Strategist

WSA adjusts forecast for global steel demand in 2023

10/18/2023 - 07:27

The World Steel Association's (WSA) 2023 global steel demand prediction has been lowered. The organization projects that in 2023, the world's steel consumption would rise by 1.8% to 1,814.5 million tons.

The group predicted in April that this year's consumption would increase by 2.3% to 1.822 billion tons.

Compared to a 1.7% increase predicted in the spring, the WSA now projects a 1.9% growth in worldwide demand to 1,849.1 million tons in 2024.

High interest rates and inflation will have an impact on demand, the analysts note.

In the context of declining investment and declining demand, the activity of steel-using industries has dramatically cooled starting in the second half of 2022, both in the majority of industrial sectors and in the regions. The EU and the US are primarily affected by this predicament, which has persisted beyond 2023, according to the association.

 "We anticipate that the advanced economies' rebound in steel demand in 2024 will be sluggish due to the delayed effect of monetary tightening. Although emerging economies perform differently from developed ones, with Asia exhibiting stability, growth rates in emerging economies are predicted to be higher than in developed nations," the WSA added.