India’s steel demand to increase post polls
Steel demand in India is tipped to show an above-7% in both 2019 and 2020 on sustained infra spends with the economy expected to achieve faster growth in the second half of 2019 post general elections having overcome the shocks of demonetisation and the Goods & Services Tax (GST) implementation, the World Steel Association (worldsteel) has said.
While the fiscal deficit might weigh on public investment to an extent, the wide range of continuing infrastructure projects is likely to support growth in steel demand above 7% in both 2019 and 2020, the Brussels-based industry association said in its latest Short Range Outlook April 2019. Worldsteel members represent around 85% of global steel production.
In 2018, global steel demand increased by 2.1%, growing slightly slower than in 2017. In 2019 and 2020 growth is still expected, but in a less favourable economic environment. China’s deceleration, a slowing global economy, and uncertainty surrounding trade policies and the political situation in many regions suggest a possible moderation in business confidence and investment.
Steel demand in developing Asia excluding China is expected to grow by 6.5% and 6.4% in 2019 and 2020 respectively, making it the fastest growing region in the global steel industry. In the ASEAN region, infrastructure development supports demand for steel, it said.