ArcelorMittal said “China, which uses about half of the world’s steel, is now expected to see a drop in demand, the first contraction since 2015. Demand in the US and Europe will grow at a slower pace this year. China’s steel demand is seen falling by 0.5% to 1.5% this year, compared with growth of 3.5% in 2018. While global consumption will grow at a slower pace than last year, the outlook for the world excluding China is slightly stronger, driven by stabilization in Turkey.”
The reports from steelmakers reinforce economic data pointing to a gloomy outlook for the global economy. Sentiment is being dented by the ongoing China and US trade war, Brexit, as a well as manufacturing and sentiment indicators that point to waning demand.
Steel is often viewed as a barometer for global growth because it’s the backbone for much of the world’s construction and manufacturing. The industry is also facing a squeeze on profit margins as prices of iron ore surge in the aftermath of Vale SA’s dam collapse in Brazil.
Source : BLOOMBERG QUINT
Yaang Pipe Industry Co., Limited (www.yaang.com)