Steel demand in developed economies is expected to rebound slightly in 2020
Oct. 23, 2019
After a 1.2% increase in 2018, steel demand in developed economies is expected to decline slightly by 0.1% in 2019, the construction industry will continue to grow, and manufacturing will decline due to the deterioration of exports and investment environment. In 2020, steel demand in developed economies is expected to grow by 0.6% under the effect of a technical rebound.
From 2019 to 2020, the construction market in developed economies presents mixed feelings. In 2019, the US construction market is weak, and it is unlikely that the recovery will be achieved by 2020. Although the construction market in Germany, Spain, the Netherlands and other places continues to grow, the growth rate will slow down under the dual influence of weak economic fundamentals and restrictions on building capacity. However, the growth of investment in energy, transportation and communication networks is expected to make civil engineering a new driving force for the growth of the European construction market.
In 2019, with the decline of major auto markets such as Germany and South Korea, the global auto market shrank. The auto market recession is mainly affected by economic factors, including market saturation, reduction in purchasing and promotion policies, and most importantly, as the focus of the automotive industry shifts from hybrid to pure electric vehicles, consumers are making purchasing decisions. I became hesitant.
Demand for steel in developing and emerging economies is mixed
In 2019, steel demand growth in emerging economies (excluding China) is expected to slow to 0.4%, mainly due to the shrinking economic growth in Turkey, the Middle East and North Africa (MENA) and Latin America.
In 2020, investment in infrastructure construction is expected to drive steel demand in emerging economies to rebound to 4.1%, a phenomenon that is more pronounced in Asia, such as ASEAN countries and India.
Infrastructure growth in Latin America is subject to economic uncertainty and government budget issues. However, the Brazilian construction market, which has been declining since 2014, will show a positive growth trend in 2019, and this growth will continue as infrastructure construction becomes a priority policy.