The Future of Global Steel Market for the year 2020

The Future of Global Steel Market for the year 2020

Overview

The Steel Industry all around the world has been massive spikes in demand and supply over the years. The introduction of steel as the means to create something has been a welcoming boon for all of them, and it will continue to be so in the years that will follow.

The World Steel Association, Brussels, Belgium has revealed the official figures for 2020’s steel market, and it looks promisingly good. They have announced their deliberations in the Short-Range Outlook survey which tells us that the demand would rise by about 1.0% in 2020, as compared to the 1.3% in 2019. Let us take a look at this with some more details in the subsequent section.

Positive Demand for Steel in 2020

2018 saw a sudden spike in the demand for stainless steel owing to the closure of China’s induction furnaces. The demand for steel in the world in 2020 is a calculated increase of about 1,751.6 metric tonnes, which is about 16 metric tonnes more than in 2019. It is not a substantial increase as many of the industrial experts claim, but it is something rather than nothing. Getting a quality and stainless steel supplier with these statistics could be difficult but its entirely possible since 2020 would be good.  

The constant slowdown of the Chinese economy and some flawed trade policies could be the possible reason that there is a deprecation on their part. Because 2020, will see rapid investments in steel in a less than conducive economic environments. Many other steel types like the acid-resistant steel and duplex steel will also witness rising demands. 

Worries of Weaker Trade Environment

2018 saw a miraculously great increase in the quality steel demand of over 1.8%, and the following years are witnessing a dropping steel demand as compared to the former years. The chief reason would be degenerating trade atmosphere.

The United States mainly benefitted in the previous quarter of the 2017-18 owing to the fiscal inducement introduced by the U.S. Government. 2019 has slowed it down greatly which will also impact the construction sector, and the manufacturing demands will also slow down. 

The European Union are also affected by the depreciating trade conditions, mainly because of the unpopular Brexit. This is definitely going to lead to a slower pace for the demand for structural steel, and other types as well. But 2020, will be witnessing a major spurt for EU economies once the trade strains subside. 

Asia, particularly India has seen its fair share of worries owing the controversial demonetization, and the inclusion of GST in their ranks. But the demand for steel over here would be much better than many other economies. A record 7% of the steel demand is expected and that is great news for them.

Japan had a great demand for steel in 2018 because of the two most important factors. They had a very conducive investment environment and a steady rise in construction projects over time. This helped them in improving their economy considerably well. But because of these additional trade practices, there could be a drop in the demand for steel in 2020. Even the projects would be comparatively low than in 2018.

There has been markedly less demand for steel in Korea especially. Since the main construction activities that they focus on are, shipbuilding and automotive sectors. Steel demand is usually high in these two frontiers, and it has slowed down. 2019 was about the same for them, because of slight changes in the real estate policies. 2020 might be a year of redemption for them since a slight growth is expected and this will hopefully help them in replenishing their coffers in due time. 

Even the GCC Economies would be having an increase in steel demands in the latter half of 2019 and the complete 2020. Iran might witness a slightly lower demand while Egypt will see a comparatively great demand in steel. 

Conclusion

It is definitely a mixed bag for all of the countries and economies when it comes to measuring the World’s steel market. But the global average is marking towards the positive in the year 2020. The trade wars need to be less strained and the economies need to focus on how best to actively rejuvenate the steel trading. 

Constant depreciation can be fatal to many growing economies and the slower ones as well. As to the future of the steel market for the year 2020, it is assuredly rising and is in good hands.