In its latest short-term demand forecast, the association projects that global markets will demand 1.62 billion metric tons of steel this year. The forecast represents an upward revision of its previous forecast, which predicted growth of 1.6%. 

“The recovery momentum in the advanced economies is expected to remain robust and, more importantly, is more investment-driven now than in the past,” said Nae Hee Han, World Steel’s director of economic studies and statistics. 

“The recovery in the emerging economies also seems to be gaining a stronger foothold on the back of a stronger global economy, especially for those Latin American countries which had been rather slow to benefit from the upturn,” she added. 

However, the association is forecasting growth to slow in 2019, predicting demand will rise by seven-tenths of a percent. 

It also has noted that the relationship between gross domestic product and demand is changing. In the past, steel demand tended to overshoot GDP growth in market upswings and GDP declines in down cycles. But this hasn’t been the case since 2016. 

“Implementation of circular economy principles within our society is just at an early stage now, and its wider application will affect steel demand in many fundamental ways; through recycling, sharing, reuse and remanufacturing practices. All this will make the link between steel demand and economic activities weaker in the future,” Han said.