For the worldwide steel market, global demand is expected to keep rising in 2015 — with some regions showing more demand than others.
In China, the world’s largest consumer of finished steel, demand for steel is expected to grow by 1.4% throughout 2015, reaching 720 million tons.
According to a Dec. 3 SteelOrbis article, finished steel demand growth in China has slowed from 2014’s 2.45% year on year growth rate. This slowdown of nationwide demand for finished steel can largely be attributed to its steel industry struggling with debt and overcapacity.
Steel is a raw material essential for a number of crucial industries like the automobile industry, construction and machinery and manufacturing, an English.news.cn article reports. It’s also one of the most important raw materials for oil drilling rigs manufacturers, used for drill rigs, masts, storage tanks and pumps and a number of other pieces of equipment in the drilling process.
Meanwhile, demand for steel in the United Arab Emirates is predicted to grow by an astonishing 25% next year, possibly due to the Middle Eastern nation’s larger industry for oil drilling and greater presence of drilling rigs manufacturers. The UAE is also buying up finished steel for projects like new railroads and public transport projects, airport developments and even new theme parks, the Khaleej Times reports.
In the U.S. and Europe, demand for steel is expected to rise more modestly, with demand growing by 3% and 2.6%, respectively. For Europe, much of the growth in demand is expected to originate from the construction and automotive industries, SteelOrbis reports, especially for residential construction.
What do you think about industry predictions for global steel demand next year? Could slowdown of demand in China signal problems for the worldwide market of this raw material that’s so important for most industrial sectors? Share your thoughts with us by leaving a comment below. More information like this.