Overseas
July 14, 2020
CRU: Long, Slow Recovery Ahead for Steel Sheet Demand
Written by James Campbell
By CRU Principal Analyst James Campbell, from CRU’s Steel Sheet Products Market Outlook
Sheet demand collapsed in 2020 Q2 to the lowest level in a decade. As lockdowns eased in May, manufacturing activity improved, and prices increased in most regions. Global sheet demand is expected to improve in 2020 Q3 and accelerate in 2021. However, output will be lower than pre-Covid levels. Outside of China, demand destruction caused by the impact of Covid-19 means we have lost four years of growth compared to our forecast a year ago and two years of growth compared to our January forecast. With demand weaker, some of the new crude steel capacity planned during the 2017-2018 boom is unlikely to be needed in the next two to three years, especially as there are significant risks to the downside.
