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Global steel use to rise 3.6% in 2012
Dr. M.S. KAPADIA
Wednesday, June 06, 2012, 16:52 Hrs  [IST]

Global apparent steel use will increase by 3.6 per cent to 1,422 million tonnes in 2012 according to World Steel Association (worldsteel), following growth of 5.6 per cent in 2011. World steel demand will grow by 4.5 per cent to around 1,486 million tonnes in 2013.

"Despite the market weakening in the fourth quarter of 2011, world steel demand achieved solid growth of 5.6 per cent in 2011 due to the recovery momentum seen in the first half of the year. Though we saw a series of negative events in 2011 (including Japan's earthquake, political turmoil in MENA and flooding in Thailand), their impact proved to be contained mostly locally,” Hans Juergen Kerkhoff, Chairman, worldsteel Economics Committee, has said.

“The exception was the euro zone debt crisis which did have global impact and is the main cause behind the deterioration in this new forecast from our previous one issued in October 2011. Signs of stability are now emerging and we expect the recovery to resume in the second half of this year, leading to a higher growth forecast for 2013," Hans Juergen Kerkhoff added.

China: China's apparent steel use is expected to increase by 4 per cent to 648.8 million tonnes in 2012, and an identical measure in 2013, as compared to 6.2 per cent in 2011. India is expected to resume its high growth trend (after a sluggish performance in 2011). In 2012, India's steel use is forecast to grow by 6.9 per cent to reach 72.5 million tonnes. The growth rate is forecast to accelerate to 9.4 per cent in 2013 on the back of urbanisation and surging infrastructure investment.

Americas: Apparent steel use in the US is forecast to grow 5.7 per cent in 2012. In 2013, the steel use in the US will probably grow by 5.6 per cent to 99.5 million tonnes, bringing it to 92 per cent of the pre-crisis 2007 level.

In Central and South America, apparent steel use is predicted to grow by 6.8 per cent in 2012, with Brazil returning to a positive growth of over 5 per cent. In 2013, the region's apparent steel use is anticipated to grow by 6.7 per cent to reach 52.5 million tonnes, 28 per cent higher than the 2007 level.

European Union: The recovery of steel demand is expected to stall in most of the EU in 2012 as the sovereign debt problems continue to act as a major drag on economic activities in the area, but with some differentiated pictures across the regions. In particular, the financially troubled countries of the region are expected to see their apparent steel use decline further. Overall, apparent steel use in the EU is envisaged to slide by 1.2 per cent to 150.9 million tonnes in 2012, but a modest recovery of 3.3 per cent is expected in 2013. These projections will bring steel demand in the EU to 155.8 Mt in 2013, only 79 per cent of the 2007 level.

Japan: Japan's steel use is expected to decline by 0.6 per cent to 63.7 million tonnes in 2012 due to the impact of exchange rate appreciation, despite the reconstruction efforts following the March 2011 earthquake. In 2013 apparent steel use in the country is forecast to decline by 2.2 per cent to 62.3 million tonnes, which is 77 per cent of the 2007 level.

CIS: In the CIS, apparent steel use is estimated to grow by 4.1 per cent in 2012 and 5.1 per cent in 2013. Steel demand in the MENA region will likely rebound to 5.7 per cent in 2012, over a 2.0 per cent drop in 2011 due to the impact of the political turmoil in the region. The expansion rate in steel use in MENA is forecast to accelerate to 8.4 per cent in 2013. These projections will bring the region's apparent steel use to 68.5 million tonnes in 2013. This is a record for the region and 26 per cent over the 2007 level.

Worldsteel forecast suggests that by 2013, steel use in the developed world will still be 14 per cent below the 2007 level whereas in the emerging and developing economies, it will be 45 per cent higher. In 2013, the emerging and developing economies will account for around 72 per cent of world steel demand in contrast to 61 per cent in 2007.

In the meantime, world crude steel production during the first four months of 2012 was placed at 505 million tonnes, indicative of a near-stagnation at year-ago level. China produced 235 million tonnes and India 24 million tonnes during January-April 2012. The crude steel capacity utilisation ratio for the 62 countries in April remained nearly unchanged at 81.1 per cent of March, but showed 1.7 percentage points decline compared to April 2011.

The World Steel Association (worldsteel) represents approximately 170 steel producers (including 17 of the world's 20 largest steel companies), national and regional steel industry associations, and steel research institutes. worldsteel members produce around 85 per cent of the world's steel.

Untitled Document
APPARENT STEEL USE FORECAST

ASU (million tonnes)
Growth Rates (%)
Regions
2011
2012 (f)
2013 (f)
2011
2012 (f)
2013
European Union 152.8 150.9 155.8 5.4 -1.2 3.3
Other Europe 33.0 35.0 37.2 11.3 6.2 6.1
CIS 54.0 56.2 59.1 12.1 4.1 5.1
NAFTA 121.2 127.5 134 9.0 5.2 5.1
Central & South America 46.0 49.1 52.5 1.9 6.8 6.7
Africa 22.7 25.1 28.2 -8.5 10.9 12.2
Middle East 48.1 49.8 53.0 2.7 3.5 6.4
Asia & Oceania 895.5 928.6 966.0 5.3 3.7 4
World 1,373.3 1,422.3 1,485.7 5.6 3.6 4.5
Of which
Developed Economies 393.3 397.5 408.5 5.5 1.1 2.8
Emerging & Developing Economies 980 1,024.9 1,077.1 5.6 4.6 5.1
 
                 
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