As the portal AJOT.com reports, the demand in China is increasing. In addition the US industry asserts itself in the midst of a cloudy global outlook and the negative effects of possible new COVID resolutions.
Worldwide imports of metals and minerals by sea have declined 8.3% this year
Worldwide imports of metals and minerals by sea have declined 8.3% this year (as of August), according to a recent report from Descartes. However, the volume of steel imports was not affected to a similar extent, with iron and steel structures and parts even showing an increase of 32.8% over the same period.
Demand for steel is declining less than originally expected
Figures such as these led the World Steel Association (WSA) to conclude in October that global demand for steel is declining less than originally expected. According to a report by Worldsteel, demand for steel is expected to contract by 2.4% this year, compared with a 6.4% decline predicted in June.
Rising consumption in China, which is expected to increase by 8% year-on-year
Rising consumption in China, which is expected to increase by 8% year-on-year, is the main reason for Worldsteel’s more optimistic outlook, although the steel industry in the United States also performed better than some other industries during the pandemic. Worldsteel forecasts that demand in the US will fall by 15.8% this year before rising again by 6.6% in 2021. Next year, global demand is forecast to increase by 4.1%.
Global steel prices rose by more than 30% in the third quarter of 2020
Global steel prices rose by more than 30% in the third quarter of 2020, after reaching a low point in the second quarter when economic activity had slumped across the board due to the pandemic. Steel scrap prices also fell in March and April and then rose steadily until September. US domestic scrap prices and demand for scrap were weaker in the third quarter than for exports, but they also rose sharply in September.
Steel capacity utilization in the United States on the rise
Steel capacity utilization in the United States rose from 53% in the third quarter to 62% at the end of September and reportedly reached 70% in October – still below the 81% utilization rate that pre-pandemic levels prevailed. The domestic steel industry also benefited from several COVID-specific factors, including strength in construction, automotive and e-commerce.
Source: ajot.com
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