The World Steel Association has delayed its bi-annual outlook on global steel demand due to the uncertainties caused by Covid-19. Nevertheless, a big fall in overall steel demand this year is inevitable.

“After slower than expected growth in 2019, mainly due to the deep manufacturing recession in the developed economies, we are seeing a further decline in global steel demand in the second quarter of 2020. The duration of the present disruption is currently impossible to judge,” the association says.

Many in the market are convinced 2020 will be the most challenging year for the steel sector in decades, but worldsteel is still hopeful. “It is possible that the impact on steel demand in relation to the expected contraction in GDP may turn out to be less severe than that seen during the global financial crisis. The 2008 financial crisis was prompted by a severe reduction in industrial and investment activities because of the collapse of the financial system. The current economic crisis for all service and direct consumer sectors may prove to be less steel intensive,” the association adds.