Global Steel Demand Outlook Remains Positive Despite Economic Headwinds

Despite concerns about global economic growth, steel demand is expected to remain resilient through the coming year, supported by infrastructure investment and the energy transition.

The World Steel Association’s latest forecast projects global steel demand to grow by 1.7% next year, with emerging markets leading the expansion. India, in particular, is expected to see demand growth exceeding 6% as the country continues its infrastructure buildout.

“Steel remains essential for economic development,” said an economist specializing in commodities. “While some developed markets may see flat or declining demand, growth in Asia and other emerging regions more than compensates.”

The energy transition is emerging as a significant new demand driver. Wind turbines, solar panel mounting structures, and grid infrastructure all require substantial quantities of steel. Electric vehicle production also consumes more steel per unit than traditional vehicles due to battery enclosures and structural reinforcements.

Chinese steel exports are expected to remain strong, filling supply gaps in markets where local production is insufficient to meet demand. This provides an outlet for Chinese mills even if domestic consumption moderates.