Worldsteel Celebrates Rapid Recovery in Steel Sectors
Steel sectors appear to be recovering faster than other sectors such as hospitality, aviation and entertainment, according to a recent World Association's Short Term Outlook (SRO) steel producers (Worldsteel). In particular, there is a strong recovery in the manufacturing sector.
Increased focus on government projects from various governments has resulted in a highly sustainable construction sector. The trade organization estimates that the construction sector in emerging economies such as Turkey, Mexico and Brazil is likely to see double-digit contraction in 2020. On the other hand, government stimulus measures are more likely to lead to a strong recovery in China. construction sector. Also, recovery will be slow in 2021.
Global Automotive
A sector that has been severely affected is the automotive sector. In April this year, car production in many countries fell by almost 70-90%. World auto production in the second quarter of this year decreased by 34% compared to the same period last year. Meanwhile, strong domestic demand led to a faster recovery in China.
The huge contraction in the engineering sector in the second quarter of 2020 was due to China, the EU, the US and Japan. However, according to SRO Worldsteel, the decline in the production of equipment began to slow down since May of this year.