Following a 3.0 percent contraction in 2015, the association estimated demand will decrease another 0.8 percent this year to 1,488 million tonnes (Mt), but will rebound slightly in 2017 for a modest 0.4 percent growth to reach 1,494 Mt.

Steel Demand by Region

According to the worldsteel report, the fastest-growing region in the world this year and next will be Africa, with a 3.8 percent rise this year and 6.5 percent in 2017. North America is also seen growing, up 3.2 percent in 2016 and 2.6 percent in 2017. The EU region should grow 1.4 percent this year and 1.7 percent next year.

The Central and South American regions are expected to enjoy the biggest rebound, declining by 6.0 percent this year, but growing 3.2 percent in 2017. And the CIS will likewise contract 7.4 percent in 2016, but enjoy 4.6 percent growth next year.

TV Narendran, chairman of the worldsteel Economics Committee, said: “The economic environment facing the steel industry continues to be challenging with China’s slowdown impacting globally across a range of indicators contributing to volatility in financial markets, sluggish growth in global trade and low oil and other commodity prices.”

China Lags in 2017

“Growth for steel demand in all markets except China is expected in 2017,” Narendran said in the report.

The report identified a “severe depression” in construction activities in China as being a major contributor to the slowdown there, predicting a 4.0 percent decline this year and a 3.0 percent drop next year.

With that contraction, China’s demand for steel would fall to 626.1 Mt in 2017, or about 41.9 percent of world steel use — that’s a major drop from 47.9 percent of the world usage China enjoyed in 2009.

Emerging and Developing Markets Rebounding

Other markets continuing to struggle include Brazil — which fell 16.7 percent in 2015 and should contract another 8.8 percent this year before recovering a little in 2017 — and Russia.

However, territories seen as growing this year and next year include Turkey, Thailand, Malaysia, Vietnam, Indonesia and the Philippines.

All told, demand for steel in emerging and developing economies (excluding China) is predicted to grow 1.8 percent this year and 4.8 percent next year, to raise their total demand for steel to 457.1 Mt (about 30 percent of world demand).

Demand Trends Favorable for POSCO

worldsteel’s prediction that steel demand is turning around matches many of the financial results seen in POSCO’s first-quarter earnings report for 2016. POSCO announced KRW 12.45 trillion in revenue, down slightly from the previous quarter, but its operating profit was up KRW 319.3 billion to KRW 659.8 billion.

In the report, POSCO attributed its improving financial results to strong improvements in sales performances by its overseas steel corporations. POSCO has also announced a sales goal of KRW 58.7 trillion for 2016, up slightly from 2015.

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The Global Contribution of the Steel Industry

Did you know that steel is making the world a better place every day? The amount of daily steel production is enough to build 548 Eiffel towers. Also, steel companies provided 7.8 days of training to each employee in 2013 and 8 million people which is about the same as the population of Switzerland, is working in the steel industry. Moreover, the $100 billion paid in tax is equivalent to putting 10 million students through school each year or building 5,000 new hospitals!

Watch this interesting video created by worldsteel to learn about steel’s global contribution!

Can You Imagine Your Day without Steel?

As mentioned above, steel is enriching the world every day. And, this marvelous material accompanies us through the day: in the bedroom, at work and every where we go. Did you know that steel is indispensable to our daily lives? If you are doubtful, just check the infographic below!

Even More Steel?

Have you ever imagined how pervasive steel is? Can you think of more steel use in our everyday life? Check out our previous postings to learn about the material’s ubiquitous presence in our life and share with us if you can think of anything more!

• What are Automobiles Made of?
  

The automobile is an important part of our daily lives. And steel is a crucial requirement to build this important part. POSCO’s light, but also very durable automotive steel sheets are advancing the global auto industry.

• What is Steel Used For?
  Steel brings amusement and vibrancy to our lives by bringing musical tunes to our ears. Find out more about what steel is used for and how steel is dissolved into our daily lives.

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Worldsteel’s #lovesteel Campaign

In September 2013, the worldsteel launched its #lovesteel campaign for social media and worldsteel website. The #lovesteel campaign is a series of short videos that highlight working experiences in the steel industry. The series consists of interviews of people of worldsteel member companies, and their insights on exciting world of the steel industry to inspire young people who are interested in steel career.

POSCO Also Participated!

In fact, as a member company of worldsteel, POSCO was one of the participants of the campaign. The 14^th video of the series features Yerim Kim who is working in Investor Relations at POSCO. Let’s find out what inspires Yerim to work in the steel industry by watching the video below.

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