In light of the ongoing crisis caused by the pandemic COVID-19, world steel Association (Worldsteel) has decided not to publish in April its short-term Outlook (SRO) for the demand for steel. The Association intends to release a full version expected in June, when will be able to make a clearer assessment of the use of steel in the future.
However, Worldsteel said that the impact on demand for steel in connection with the expected reduction of world GDP may be less severe than during the global financial crisis.
"the Financial crisis of 2008 was caused by the sharp decline in industrial and investment activities due to the collapse of the financial system. The current economic crisis for all sectors and direct consumers may be less metal," said Worldsteel in.
the global steel industry is influenced by the violation of supply chains, loss of confidence and delays in investment and construction projects, as well as a decrease in the activity of consumption. The volatility of the financial market and the fall in oil prices further undermined investments.
After a slower-than-expected growth in 2019, mainly due to the deep economic recession in developed countries, Worldsteel see further decline in global steel demand in the second quarter of 2020.
the Road to recovery after the current crisis will depend critically on the duration of the blocking and timing of the quarantine. This, of course, will vary widely around the world. It is expected that the manufacturing sector will recover faster than other sectors, but failures in the supply chain are expected to continue for some time. The longer will remain the lock, the greater the damage to the supply chains that will impede a quick recovery.
"the Industry understands that many of her clients face enormous uncertainty and remains committed to maintaining reserves and resources, to be able to process orders as necessary", - summed up in Worldsteel.
