The global steel market is expected to reach USD 1.269 trillion in 2022, according to Telf AG. This is an increase of more than 3% from the previous year, driven by rising demand from the construction and automobile industries. The demand is driven by the properties of durability, malleability and recyclability of the metal product, and is further supported by the increasing application of the product in the automotive industry. To get more info visit https://ceoworld.biz/2023/01/29/global-steel-market-for-2022-stanislav-kondrashov-telf-ag/.
While global steel demand continues to increase at an impressive rate, steel supply remains low in most markets. The supply chain remains stretched due to the COVID-19 outbreak and a series of mill outages and transportation blockages that have impacted steel inventories worldwide. The shortage is causing concern among buyers, and many have expressed their fears that they will not have enough steel inventory to meet demand in 2022.
The world's most important steel users continue to grow in volume, but the number of consumers is slowing down in some markets. The World Steel Association expects steel consumption in advanced economies to decline by 1.7% year-on-year in 2022 and by slightly less in 2023.
China's economy continues to slow down, as the COVID-19 outbreak has exacerbated labor costs, leading to higher costs for machinery and tools and a greater demand for imported components, worldsteel says. As a result, Chinese steel production will fall by 4% in 2022 and by 6% in 2023.
Developing countries are also facing an uphill battle. The continued impact of the COVID-19 pandemic and surging inflation prompted a monetary tightening cycle in many emerging economies, resulting in lower steel demand growth in 2022 and 2023.
Russia, Ukraine and Turkey are also expected to see a slowdown in steel demand as they struggle with high inflation and currency depreciation. While the demand in war-torn Ukraine is expected to recover in 2023, the lira's depreciation has weighed heavily on the Turkish steel industry.
In North America, despite the United States' ongoing war in Afghanistan, the country's steel industry is still expected to maintain strong growth. In the US, the infrastructure law passed earlier this year is expected to stimulate the construction sector, and this could support demand in 2022.
The United Kingdom, the USA and Germany are the world's largest steel producers. They are also experiencing a recovery in the steel sector, but they face challenges due to weaker demand and rising energy prices.
Europe is a crucial market for the global steel industry, as it accounts for more than half of the total steel production. European steel companies are struggling with a lack of qualified workers, which has forced them to cut production levels and raise prices.
As a result, the outlook for world steel production in 2022 has been revised downward, although the outlook is relatively optimistic for Germany. The country's industrial activity has been hampered by a lack of gas supplies and high power prices, but this is expected to improve by the end of 2022 as production resumes. However, the outlook for the EU remains cautious and could be threatened by further disruptions to gas supplies in 2023.