The World Steel Association announced on Tuesday that global steel demand is forecasted to increase by 1.7% to reach 1.793 billion metric tons in 2024, with further growth anticipated in 2025.
India is projected to play a pivotal role in driving demand growth, particularly as Chinese demand experiences a decline. Following two years of downturn and significant market fluctuations post-pandemic, indications suggest that global steel demand is on track for growth in 2024 and 2025, according to the industry group’s statement.
By 2025, global steel demand is expected to climb by 1.2% to reach 1.815 billion tons.
In China, the leading producer and consumer of steel globally, apparent steel use decreased by 3.3% in 2023 and is anticipated to stabilize in 2024. The decline in real estate investment is expected to be balanced by growth in infrastructure and manufacturing sectors. The association foresees a 1% drop in China’s steel demand in 2025, still significantly lower than the peak observed in 2020.
Conversely, India has emerged as a robust driver of steel demand growth since 2021, with the association projecting an 8% increase in demand over the span of 2024 and 2025.
European steel demand, facing challenges from high inflation and tighter monetary policies, is expected to exhibit modest growth this year before a projected 5.3% gain in 2025.
Furthermore, the U.S. is poised to witness a resurgence in steel demand this year driven by robust investment activities, following a decline attributed to a slowdown in the housing market in 2023.