Burton Mills – Demand for Steel to Decrease in 2018

Burton Mills analysts say slower demand in China to affect growth of steel industry next year.

Press Release updated: Oct 25, 2017 21:38 CST

Analysts at Taipei, Taiwan-based investment house Burton Mills believe that the world’s demand for steel will slow by 1.6 percent in 2018 after robust growth this year that was driven by demand from China, currently the world’s biggest steel consumer.

According to the World Steel Association (Worldsteel), demand for steel will reach 1.648 billion tonnes in 2018 from 1.622 billion tonnes in 2017. This year’s figure is in line with the nominal expected growth of 7 percent.

When the World Steel Association convened for its general in Brussels last week, it stated that the risks to the world’s economy had to some degree subsided. It added that although we are now seeing the most favorable balance of risks since the devastating financial crisis of 2008, moderate growth is expected for next year.

Burton Mills analysts believe that the moderate growth expected next year will be mainly due to slower growth in China.

The steel industry, which is valued at approximately $900 billion a year, is a measure of the world’s overall economic well-being. Average global prices have increased by around 50 percent since the 12-year lows of December 2015.

In 2017, China shut down the majority of its obsolete and, in many instances, unlawful induction furnaces. This was a category that was traditionally not taken into account in official demand data. This explains the one-off effect on nominal and underlying demand.

The Chairman of the World Steel Association stated that progress in the world’s steel markets had been encouraging but that future prospects, especially in the longer term, are not as bright.

Contact: Biz City News – Lane 167, Section 8, Minquan East Road, Neihu District, Taipei City, Taiwan 114. [email protected]

Source: Burton Mills

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About the Author: Carrie Brunner

Carrie Brunner grew up in a small town in northern New Brunswick. She studied chemistry in college, graduated, and married her husband one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children. Carrie writes mostly on provincial stories.
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