Global Steel Demand Dynamics
In 2024, global steel demand faced challenges, with a projected decline of 0.9%, bringing total consumption to 1,751 million tonnes (Mt). This downturn is attributed to factors such as declining household purchasing power, aggressive monetary tightening, and escalating geopolitical uncertainties. However, a modest recovery is anticipated in 2025, with demand expected to increase by 1.2% to 1,772 Mt. WORLD STEEL ASSOCIATION
Regional Consumption Patterns
China: As the world’s largest steel consumer, China is experiencing a decline in demand, projected to fall by 3.0% in 2024 and an additional 1.0% in 2025. This trend is largely due to a downturn in the real estate sector, a significant driver of steel consumption. MARKET STEEL
India: In contrast, India is emerging as a bright spot, with strong growth in steel demand projected through 2025. The country’s demand is forecasted to grow by 8.0% over 2024 and 2025, driven by infrastructure investments and expansion across multiple steel-consuming sectors. MARKET STEEL
European Union: The EU steel market has faced a downturn, with apparent steel consumption dropping for six consecutive quarters up to the third quarter of 2023. This decline is attributed to war-related disruptions, unprecedented rises in energy prices, and production costs. A modest recovery is foreseen in 2025, with consumption volumes remaining below pre-pandemic levels. EUROFER
Sectoral Demand Shifts
Construction: The construction sector, accounting for a significant portion of steel consumption, has entered a recession in several regions, notably in the EU, where the downturn began in the third quarter of 2022 and continued into 2024. EUROFER
Automotive: The automotive industry is experiencing a transformation with the shift towards electric vehicles (EVs). This transition is influencing steel demand, as EVs require different steel grades and quantities compared to traditional vehicles.
Sustainability and Technological Innovations
The steel industry is increasingly focusing on sustainability, with efforts to reduce carbon emissions and implement eco-friendly production methods. Technological advancements, such as automation and digitalization, are also playing a significant role in shaping the future of steel consumption. FEDSTEEL
Trade and Policy Impacts
Global trade dynamics and policy decisions are influencing steel consumption patterns. For instance, the EU’s economic and steel market outlook for 2024-2025 highlights the impact of geopolitical tensions and regulatory measures on steel demand. EUROFER
The steel industry is undergoing a transformative phase, with consumption trends influenced by regional economic conditions, sectoral shifts, sustainability initiatives, and technological advancements. Stakeholders must stay attuned to these developments to navigate the evolving landscape effectively.
