With the growth in emerging markets and the the low growth trend in developed countries' market, the demand for the steel production and price all appear different degrees of pick up. Although, the global steel industry market is still facing a great challenge.
In the past third quarter of 2011, the requirements of steel market had reached a high level, it was 6% higher than the second quarter in the year of 2008. So according to the calculation, annual steel demand will achieve 14 billion tons. In the first 9 months of this year, the global crude steel production reaches 10.46 billion tons, it nearly increased 20% than in 2009.
Asian countries, especially in India and China,by adopting stimulus measures which is associated with the development foundation, and domestic demand policy, their steel industry gets rid of the crisis rapidly. In comparison, European and North American Free Trade Zone influenced by the economic crisis more seriously and they still not get out of trouble.Therefore, their steel industry recovery takes longer. At present, Asian steel demand is 17.6% higher than the period before economic crisis. Particularly, the requirements of China steel industry almost 1/3 higher than before. By contrast, the steel consumption in many developed countries is still lower than its pre-crisis level.
From January 2009 to May 2010, the global crude steel production goes up rapidly which enhances the capacity utilization of global crude steel. Now, the
crude steel production of North American Free Trade Zone area and EU has increased quickly, but this growth is based on the lower growth foundation. On the other hand, from june 2010 to September 2010, the weak demand for steel and in order to achieve the targets for saving energy and reducing emissions,China decides to reduce production temporarily, thus the global crude steel production fell again.But in the short term, the global economic prospects,especially the steel demand still have large uncertainly.
The global economic will continue rises up and it will have a gradual growth in 2011 and 2012. China's economic growth rate increases almost 10% and India also increases above 8%. However, the financial markets have too many instability factors, so the global economy still facing the crisis of slowdown.
According to the World Steel Association predicts that in 2011 the global steel demand will increase 5.3% in the same year,this means the crude steel production will increase more. The highest production rate will reach 11.1% which appears in the Commonwealth of the Independence States. The followings are American increases 9% and European increases 5.7%.
In Asia, the steel demand in 2011 will grow 4.1% than the same year. Among them, the highest growth rate is in India which achieves 13.5%, thereafter is in southeast Asia, it reaches 7.4%.But in Japan, the steel demand in 2011 will drop 1.4%, and in South Korea it only increased 2.8%. It forecasts that the China steel demand will increases 3.5% and from 2005 to 2010 China steel demand growth rate as high as 13.5%.
Due to the increased demand for steel and the growing prices of the steel production material, the
steel prices will continue to rise.
Source:
Tags:
