The COVID-19 pandemic has caused severe shocks in steel demand so far in 2020 and the recovery will be slow, acknowledged Nae Hee Han from the World Steel Association (WSA) at the 2020 SEASI e-Conference on June 30. And among all steel-consuming industries, automobile manufacturing is the sector being impacted the most, she told delegates.
Han reemphasized WSA’s expectation in early June that global steel demand would contract by 6.4% on year to 1.65 billion tonnes during 2020, and that demand is expected to recover by 3.8% on year to 1.7 billion tonnes next year.
She also pointed out that the influence from COVID-19 on steel demand in some emerging economies was more severe, such as in India, the Middle East and North Africa (MENA), with steel demand in the former seen dropping by 18% on year and that in MENA lower by 15.2%.
More than a decade ago when the global financial crisis hit, global steel demand in 2009 had reversed up a large 14.1% from 2008, the first year of the crisis. But this time, the recovery in global steel demand in both developed and developing countries is expected to be slower than that, as many industries including steel will have to face changes in demand structure and operational environment, Han told delegates.
Many steel consuming industries have felt significant impact from the virus outbreak, and Han described the auto industry as “the largest victim of the pandemic”. Global steel demand from the auto sector this year is expected to decline by 3.7% on year, while the demand excluding in China might decrease by a sharper 18% on year, according to her.
In late January, China became the first country hit by the virus and since then, commerce and industrial activity have gradually resumed, when other countries have been attacked by the virus starting March, Mysteel Global noted.
In parallel, global steel demand from the machinery industry in 2020 is estimated to decline 0.5% on year, though excluding China, the decline would be sharper at 9.8%, Mysteel Global noted from Han’s presentation. Among other steel consuming sectors, steel demand worldwide from the construction sector is expected to grow at a slower pace of 2.5% this year, as against the 5.5% on-year rise seen in 2019, while total demand excluding in China is expected to drop 3.9% on year, Han noted.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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