Worldsteel: Global steel demand to decrease further in Q2
2020-05-08 17:57:31 [Print]
Recently, the World Steel Association issued a provisional note on steel demand and the economic situation. The note pointed out that amid the epidemic, downstream users of steel were hit by lockdown, supply chain disruptions, a collapse in confidence, delays in investment and construction projects, and a decline in consumption activity, leading to a significant reduction in demand. At the same time, instability in financial markets and falling oil prices have further weakened capital investment.
The World Steel Association expects global steel demand to decrease further in Q2 2020, but it is not clear how long the decline will last. However, the impact of COVID-19 on steel demand may not be as severe as that of the 2008-2009 global financial crisis. Manufacturing is expected to return to normal more quickly than other industries, but disruption to global supply chains is expected to continue for some time, the World Steel Association said.
The World Steel Association says in the note that while production and operations in all of China's downstream industries of steel have been largely resumed, the recovery of export-oriented industries will inevitably take longer. China's downstream steel market is expected to rebound strongly in the second half of 2020, especially in the infrastructure sector. However, different countries around the world will end the lockdown at different times, which may have some impact on China's manufacturing recovery.
The World Steel Association expects global steel demand to decrease further in Q2 2020, but it is not clear how long the decline will last. However, the impact of COVID-19 on steel demand may not be as severe as that of the 2008-2009 global financial crisis. Manufacturing is expected to return to normal more quickly than other industries, but disruption to global supply chains is expected to continue for some time, the World Steel Association said.
The World Steel Association says in the note that while production and operations in all of China's downstream industries of steel have been largely resumed, the recovery of export-oriented industries will inevitably take longer. China's downstream steel market is expected to rebound strongly in the second half of 2020, especially in the infrastructure sector. However, different countries around the world will end the lockdown at different times, which may have some impact on China's manufacturing recovery.
