Boosted by rising infrastructure spending and the gradual revival of the automotive sector, steel demand growth in India will be the highest in 2022 at 7.5% among major consuming countries, including China and the United States. United States, the World Steel Association (WSA) announced on Thursday.
Globally, however, steel demand will slow this year to just 0.4% from 2.7% last year. Máximo Vedoya, chairman of the economic committee of Worldsteel, said: “For 2022 and 2023, the outlook is very uncertain. The expectation of a continued and stable recovery from the pandemic has been shaken by the war in Ukraine and rising inflation.
The WSA, whose members produce 85% of the world’s steel, in its short-term outlook forecast India’s steel demand at 114 million tonnes (MT) in 2022, up from 106 MT a year earlier. .
Also in 2023, steel demand growth in India will be the second highest at 6% after Germany, which is expected to have a better demand growth rate of 7.6%. Germany, however, consumes a third of what India consumes annually.
“In 2022, construction and manufacturing (of India) will likely be supported by infrastructure spending and a gradual recovery in automotive production, with an expected improvement in semiconductor supply. supplies of expected raw materials in the international market will lead to an increase in domestic mining production and support the capital goods sector,” WSA said.
However, the war in Ukraine poses a new risk of supply disruption and inflation, which could impact India’s central bank’s dovish stance and consumer sentiment, he said.
The impact of the war will also be felt globally via rising energy and commodity prices – especially raw materials for steel production – and continued disruptions to the supply chain. supply.
“Furthermore, financial market volatility and heightened uncertainty will undermine investment. These global fallout from the war in Ukraine, along with weak growth in China, point to lower expectations for global steel demand growth in 2022,” WSA said.