The association in April forecast that demand would reach 1.79 billion metric tons this year, but now expects 2024 demand to reach 1.75 billion metric tons, a decline of 0.9% from last year. 

“2024 has been a difficult year for global steel demand as the global manufacturing sector continued to grapple with persistent headwinds such as declining household purchasing power, aggressive monetary tightening, and escalating geopolitical uncertainties. The ongoing weakness in housing construction, which is driven by tight financing conditions and high costs, has further contributed to the sluggish demand for steel,” said Martin Theuringer, German Steel Association managing director and chair of the worldsteel economics committee. 

Most of the downward revision fall on China, where demand is expected to 3% this year due to the ongoing troubles in its real estate sector. Demand in developed economies, is expected to fall 2.0% as major steel-using economies like the U.S., Japan, Korea and Germany face significant declines, Theuringer said.