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The global steel market is projected to experience a compound annual growth rate (CAGR) of 4.2% during the forecast period, driven by expansion in the automotive sector and shipbuilding demand. Developing countries are expected to account for most of this share due to their expanding infrastructure and manufacturing activities.
Asia Pacific is expected to be the leading steel market, with its share increasing from 32% in 2018 to 44% by 2022. China is forecasted to remain at the helm, while India and other ASEAN regions are also projected to experience strong growth rates.
Europe is predicted to experience a moderate increase in steel demand, with its market projected to expand at an annual compound growth rate (CAGR) of 2.3% over the forecast period. The European steel industry will experience increased investment due to booming construction activities and rising per capita income levels.
World Steel Association forecasts global steel demand to rise 0.4% in 2022 and 1.8% in 2023, down from last year's 3.6% expansion. Despite weaker-than-expected growth in China, the Association predicts demand will remain steady in 2022 due to government measures supporting real estate development.
The USA is forecast to experience a modest boost in steel demand, driven by pent-up demand in the auto sector. According to the Association, improvements to US infrastructure could spur investment and boost steel consumption by as much as 1 percent.
China is projected to experience a slight decrease in steel demand this year due to several economic obstacles, such as currency depreciation and an overall weaker economy. To combat these issues, the Chinese government has taken measures such as increasing infrastructure investments and stabilizing real estate prices.
Companies facing such a bleak outlook must adjust their business models and strategies accordingly. They need to find ways to minimize cost while maximizing profit, particularly by cutting expenses related to transportation and storage facilities. Furthermore, they should develop new production techniques and partnerships.