Posted on 03 Jun 2015
After five years of strong growth in demand, 2014 saw the world steel sector enter turbulent times. What can we expect in the next five years…? MEPS expects that 2015 will be a year in which global steel supply and demand turn negative. This situation is likely to develop as a result of weakening steel requirements and oversupply in some of the main consuming markets around the world – including, China, United States, Japan, Russia and Brazil.
Despite the anticipated modest decline in global steel demand, this year, MEPS predicts that annual average steel consumption, in most regions of the world, will increase steadily in the future. However, the gains will be much more sober than those recorded in the first half of the current decade.
MEPS latest report, Future Trends in Iron and Steel Production to 2019, provides crucial data and insight into the global steel sector over the next five years. It is an essential point of reference for those important business planning decisions.
What is included in the report?
An introduction and executive summary offers a quick reference guide for busy executives. An economic overview has been drawn from the latest forecasts by the World Bank, IMF, Consensus Economics and other learned bodies. MEPS have also incorporated its own assessment of future trends in discussions with steel consumers, traders and manufactures.
Steel demand for the first four years of this decade is examined, proceeded by MEPS five year forecast of apparent consumption of finished steel .
Crude steel and iron production forecasts to 2019 are provided for 56 countries. In addition, we take a look at our predictions for the volume of steel produced in the main manufacturing processes – oxygen converter (BOF), electric (EAF) and others (including open hearth and modified convertors).
A section on supply / demand balance measures the excess, or deficit of steel output within a region, or major consuming country. To do this, we have converted finished steel consumption into its crude steel equivalent. This conversion allows a forecast to be made of regional supply / demand balance.
We round up the report with our conclusions. Including a section of downside risks, upside potential and appendices of charts showing historical and future trends.
