Projected global steel demand is expected to increase by 1.8% in 2023 and 1.9% in 2024, according to worldsteel.

Global steel demand is anticipated to experience a 1.8% growth in 2023 and a 1.9% expansion in 2024, as stated by the World Steel Association (worldsteel), an organization representing all steel-producing nations. According to worldsteel's short-range outlook, the demand is projected to reach 1,814.5 million tonnes (mt) in 2023 and 1,849.1 mt in 2024. The association had previously estimated 2022 crude steel production at 1,831.5 mt, reflecting a 4.3% decrease compared to 2021.

Worldsteel noted that the recovery of steel demand is anticipated to be sluggish in developed economies, while expressing optimism about the prospects of developing nations. The organization highlighted the impact of a high inflation and interest rate environment on steel demand, noting a notable cooling of activities in steel-using sectors across most regions since the second half of 2022. This slowdown, attributed to weakened investment and consumption, persisted into 2023, particularly affecting the European Union (EU) and the United States.

Worldsteel further emphasized that, due to the delayed effects of the tightening monetary policy, the expectation is for a gradual recovery of steel demand in advanced economies in 2024. In contrast, emerging economies are projected to grow at a faster pace than developed ones. However, the performance of emerging economies is divergent, with emerging Asia demonstrating resilience amid these conditions.

Despite the challenges posed by a high-interest rate environment, the Indian economy remains stable, and the steel demand in India is poised to sustain its robust growth trajectory. The growth in the country's construction sector is fueled by substantial government investments in infrastructure and a rebound in private investment. Additionally, the capital goods sector is expected to benefit from ongoing infrastructure investments. The automotive sector is projected to maintain a healthy growth momentum.

In 2022, the steel demand in India exhibited a noteworthy growth of 9.3%, and this positive trend is expected to continue with a robust growth of 8.6% in 2023, followed by a further increase of 7.7% in 2024. This optimistic outlook reflects the resilience and positive dynamics within India's economic landscape.