Commodities | Sep 07 2010
By Rudi Filapek-Vandyck
Steel sector analyst MEPS has updated its consumption data for the sector globally and the results make for some bullish projections.
Global consumption of finished steel, reports MEPS, is expected to be approaching 1260 million tonnes by year end. This represents an increase of 160 million tonnes on last year. By 2014, the total is expected to reach 1477 million tonnes – up by 220 million tonnes on the outturn this year.
Both projections represent increases of nearly 15% (2010) and of close to 35% (2014), respectively.
A large proportion of the future growth in steel demand will come from China, India, South America and the Middle East, report the analysts. Also, several other Asian states are likely to show strong upward trends.
MEPS also believes the surge in consumption which developed for much of the last decade is not expected to be repeated. This, say the researchers, is partly because “lessons of the past have been heeded”. Overheated economies in Asia are being restrained and profligate bank lending is being contained, say the analysts.
But while many of the stimulus packages introduced by governments around the world are being withdrawn, the exception, according to MEPS, may be in the United States where the housing crisis continues to weaken sentiment for growth in the economy.
