Steel Industry Expected To Make Strong Recovery In 2010

October 13, 2009

The Times (UK) reports, "The long night is almost over for steelmaking, which will enjoy a strong recovery in 2010, the World Steel Association (WSA) predicted yesterday." Exceptionally "strong consumption in China means that demand for the steel output of the world's mills will rise by 9.2 per cent next year, a recovery to 2008 levels, the association said." The speed of the recovery "appears to have surprised steelmakers, who began to fire up blast furnaces last summer after shutting down plants at the end of 2008." China's "steel use in 2009 is expected to increase by 18.8 per cent to 526 million tonnes, representing 48 per cent of world steel use." Without China's "rampant consumption, the association reckons that world steel demand would fall by 24 per cent this year." In April, the WSA "predicted that global steel use would decline by 14.1 per cent but the effect of the Chinese stimulus has improved the forecast to a less dramatic global decline of 8.6 per cent in 2009." AFP (10/13) also reports the story.