Steel Markets

Worldsteel: Steel Demand to Grow 1.8% in 2023

October 17, 2023

Global steel demand will reach more than 1.81 million metric tons (2 million net tons) in 2023, an increase of 1.8% over last year, the World Steel Association (worldsteel) said in its updated Short Range Outlook report.

The gain comes after steel demand contracted by 3.3% in 2022. Demand is forecasted to increase another 1.9% in 2024, reaching nearly 1.85 million metric tons, the report said.

The global economic outlook continues to be impacted by monetary tightening, a trend impacting the US domestic market as well. And while the construction sector has been negatively affected by high interest rates and a high cost environment, infrastructure investment remained positive, worldsteel said.

“Steel demand has been feeling the impact of the high inflation and interest rate environment,” said Máximo Vedoya, chairman of worldsteel’s Economic Committee. “Considering the delayed effect of the tightening monetary policy, we expect steel demand recovery in 2024 to be slow in the advanced economies.”

Worldsteel expects emerging economies to grow at faster rates than developed economies.

“It is worth noting that despite the weakening of construction activities due to high-interest rates, infrastructure investment is showing positive momentum in many regions, even in the advanced economies, reflecting the effect of decarbonization efforts,” added Vedoya.

For the US, that’s especially true given the growth in infrastructure, supported by the infrastructure bill and Inflation Reduction Act (IRA), even while manufacturing has been slowing, the report said.

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.