The World Steel Association (WSA) has released its short range outlook for global steel consumption. WSA expects global apparent steel consumption to rise by 10.7 per cent in 2010 to 1,241 MT, surpassing the pre-crisis level of 2007.
In a report released on Thursday, Deutsche Bank says that it believes that "this is a very strong endorsement of global steel demand recovery from the WSA". WSA has also stated that global steel production in March 2010 rose by 31 per cent year-on-year and global steel capacity utilisation has risen to 80.2 per cent, after a drop to 58 per cent levels in December 2008, at the peak of the global credit crisis, highlighted the report.
More importantly, WSA predicts a strong resumption in apparent steel consumption in India as well over the next two years. It forecasts a growth of 13.9 per cent and 13.7 per cent in apparent steel consumption in India in 2010 and 2011, respectively. According to WSA, India is likely to consolidate its position further in the global steel industry with its contribution to incremental consumption increasing from 6 per cent in 2010 to 13 per cent in 2011.
While the steel association firmly believes that global steel industry is on a path to recovery, it forecasts the revival in global steel demand to be led by strong growth in BRIC economies (to constitute 43 per cent of incremental consumption in 2010). Demand levels for the developed economies in 2011 are likely to be well below the peak levels of 2007.