KOLKATA:
Steel demand in India is expected to grow 3.4% this year, faster than the 2.6% expansion recorded in 2012, when high
inflation and structural problems in the economy restricted its use. Next year, however, the demand is set to grow at a substantially faster 5.6% due to accelerated attempts to implement structural reforms, according to the World Steel Association''s short range outlook for 2013 and 2014.
As per the leading international steel body''s outlook, India''s total steel demand is set to touch 7.4 million tonnes in 2013. The domestic expansion is pegged higher than the 3.1% global growth, which rests mainly on the 6% growth in China while the rest of the world is estimated to grow at just 0.7%. Next year, the global demand is projected to grow 3.3% to touch 1.52 billion tonnes amid a slow but steady recovery.
"The key risks in the global economy, the
eurozone crisis and a hard landing for the Chinese economy have continued to stabilise in last six months since April. The correction in the eurozone has been more severe than forecasted but the improvement seen recently is now expected to continue for the rest of 2013," said
Hans Jurgen Kerkhoff, chairman of WSA Economics Committee.
The association expects to see continued recovery in global steel demand in 2014, with the developed economies returning to overall positive growth.
The apparent steel use in China is expected to grow 6% in 2013 to 699.7 mt, following a 2.9% increase in 2012, reflecting the impact of the government''s stimulus measures focused on infrastructure. However, demand expansion in 2014 is expected to slow to 3%, as the Chinese government''s efforts to rebalance the economy continue to restrain investment activities.
In the
European Union, apparent steel use is expected to decline for the second straight year in 2013 by 3.8% to 134.9 mt after falling 9.5% in 2012. Steel demand is, however, expected to increase 2.1% in 2014 to 137.8 mt.
In the US, a pick-up in demand from the automotive, energy and residential construction sectors coupled with an improvement in the
global economy are likely to lead to a 3% growth in steel demand during 2014, following an estimated 0.7% growth to 96.9 mt in 2013.
