Emerging markets buy more steel
THE International Iron and Steel Institute raised its forecast for global steel demand in 2008 because of higher sales in emerging markets. The institute, which is financed by the world’s biggest steelmakers, raised its 2008 global demand growth forecast by 0.7 percentage point to 6.8 per cent. Consumption for 2007 will also rise by 6.8 per cent, 0.9 percentage point more than predicted previously, the institute said in a statement handed out in Berlin, where it’s holding its annual meeting.
Surging demand from emerging markets may help steelmakers overcome a slowdown in the US and rising raw material costs. Demand in Brazil, Russia, India and China will increase 12.8 per cent in 2007 and 11.1 per cent in 2008, the institute says.
‘‘ Demand will continue to grow at a healthy rate,’’ says Paolo Rocca, IISI vicechairman and chairman of oil and gas tube producer Tenaris SA. ‘‘ The economy in China is very strong and demand is very strong.’’
Chinese steel demand will increase 11.4 per cent in 2007 and 11.5 per cent in 2008, accounting for 35 per cent of worldwide consumption. The world’s largest nation will probably export between 50 million and 55 million metric tons of steel this year, Rocca says.
Russian steel demand will jump 25 per cent in 2007 and 9.5 per cent in 2008, led by new energy and construction projects.
Brazil’s steel demand will increase 15.7 per cent in 2007 and 5.1 per cent in 2008, on government spending. Demand in the US, Canada and Mexico will fall 4.9 per cent this year, rebounding 4 per cent next year.
‘‘ The IISI forecast assumes that the recent credit market volatility will not move the US economy into recession,’’ IISI Chairman and US Steel Corp chief executive officer John Surma says.
Demand in the European Union will rise 4 per cent in 2007 and 1.4 per cent in 2008, led by German growth.
Beijing-driven boom: China’s growth will increase steel consumption