Global steel demand to bounce 2.3% in 2023 on factory recovery

Despite the upgrade, economic conditions will hamper growth in steel consumption this year, which is due to reach 1.822 billion tonnes after declining by 3.2% in 2022, World Steel Association said.

Global steel demand will rebound this year by 2.3%, mainly due to a recovery in manufacturing activity, the World Steel Association (WSA) said on Tuesday, upgrading its forecast.

The industry group revised its October forecast, which estimated steel consumption would rise by 1% in 2023, a statement said.

Despite the upgrade, economic conditions will hamper growth in steel consumption this year, which is due to reach 1.822 billion tonnes after declining by 3.2% in 2022, the group added.

"Manufacturing is expected to lead the recovery, but high interest rates will continue to weigh on steel demand," the WSA said.

Upbeat elements for this year include "China’s reopening, Europe’s resilience in the face of the energy crisis, and the easing of supply chain bottlenecks", it added.

Growth in steel demand is due to continue next year but at a slower pace, rising 1.7% to 1.822 billion tonnes, according to the group of producers that accounts for about 85% of global steel output.

Steel demand in China, which accounts for about half of global consumption, is forecast to rise by 2% in 2023 and be flat next year.