The revival of economic activity, which began in May, was driven by the lifting of a number of restrictions related to COVID-19. However, to date, many sectors, including steel consumers, not only do not show growth, but have not recovered to last year's level. The second wave of the spread of infection again erected barriers, forcing people to reintroduce social distancing measures, which caused an increase in unemployment and another revision of forecasts for recovery from the pandemic.
According to the latest forecast by Worldsteel, published in October, in 2020 world demand for steel is expected to be within 2.4% - up to 1,725.1 million tons. Steel demand in 2021 will rise to 1,795.1 million tonnes, 4.1% more than in 2020. As for Russia, Worldsteel predicts a decline in steel consumption for 2020 by 8.5% - to 40 million tons. Previously, the association predicted a 10% decline in Russian steel consumption.
“The steel industry around the world passed the lowest point of demand this year in April, and we have seen a recovery in the market since mid-May. Nevertheless, the recovery in different countries is uneven, its dynamics depends both on progress in containing the spread of the virus, and on the level of industrial development in the state and, finally, on the scale of economic support. In particular, since the end of February, China has been demonstrating an active recovery and growth of a number of indicators, which significantly influenced our forecast, ”said Al-Remeiti, Chairman of the Worldsteel Economic Committee.