The OECD's OECD steel committee meeting document disclosed in Paris on May 16th predicted that the outlook for the global steel industry this year and next year will be good. The average annual growth rate of steel demand in 2011 and 2012 will be around 6%. China's steel industry may usher in a transition period in the next two years.
The meeting also warned that the downside risks of the steel industry still exist, including further rising prices of steel raw materials, weak economic growth in developed countries, and high oil price growth pressure.
According to the OECD steel committee**Risazawa Saburo, the world steel industry is recovering and the recovery rate is faster than expected when the financial crisis occurred; in 2010, the global steel industry rebounded strongly, but the overall rebound rate will slow this year. It is in line with the current slowing growth of the world economy.
Especially for China, the largest country in steel production, the OECD Steel Association believes that China's steel industry may usher in a transition period within the next two years. Because the iron and steel industry in China has maintained rapid growth over the past decade or more, starting from the slowdown in production in the second half of 2010, China's steel demand growth is expected to remain around 5% in both 2011 and 2012.
The OECD Steel Council believes that manufacturing will become the engine for new steel demand in many countries, especially in the areas such as automobiles, machinery and metal products. However, if the economic recovery rate in the developed countries is still relatively slow, global steel demand cannot reach the pre-crisis peak until the second half of 2012. Although the construction and real estate sector is a major part of current demand, it is still the weakest of all steel demand, especially in developed countries, and even China has cooled construction demand due to real estate regulation and environmental protection pressure.
The meeting also warned that the downside risks of the steel industry still exist, including further rising prices of steel raw materials, weak economic growth in developed countries, and high oil price growth pressure.
According to the OECD steel committee**Risazawa Saburo, the world steel industry is recovering and the recovery rate is faster than expected when the financial crisis occurred; in 2010, the global steel industry rebounded strongly, but the overall rebound rate will slow this year. It is in line with the current slowing growth of the world economy.
Especially for China, the largest country in steel production, the OECD Steel Association believes that China's steel industry may usher in a transition period within the next two years. Because the iron and steel industry in China has maintained rapid growth over the past decade or more, starting from the slowdown in production in the second half of 2010, China's steel demand growth is expected to remain around 5% in both 2011 and 2012.
The OECD Steel Council believes that manufacturing will become the engine for new steel demand in many countries, especially in the areas such as automobiles, machinery and metal products. However, if the economic recovery rate in the developed countries is still relatively slow, global steel demand cannot reach the pre-crisis peak until the second half of 2012. Although the construction and real estate sector is a major part of current demand, it is still the weakest of all steel demand, especially in developed countries, and even China has cooled construction demand due to real estate regulation and environmental protection pressure.
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