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China slowdown is weighing on steel demand - ArcelorMittal

Steel News - Published on Mon, 11 Feb 2019

Image Source: IndustryWeek
Bloomberg Quint reported that ArcelorMittal, as well as smaller European producers like Salzgitter AG and Voestalpine AG, are sounding the alarm about weakening conditions, particularly in China. ArcelorMittal said “China, which uses about half of the world’s steel, is now expected to see a drop in demand, the first contraction since 2015. Demand in the US and Europe will grow at a slower pace this year. China’s steel demand is seen falling by 0.5% to 1.5% this year, compared with growth of 3.5% in 2018. While global consumption will grow at a slower pace than last year, the outlook for the world excluding China is slightly stronger, driven by stabilization in Turkey.”

The reports from steelmakers reinforce economic data pointing to a gloomy outlook for the global economy. Sentiment is being dented by the ongoing China and US trade war, Brexit, as a well as manufacturing and sentiment indicators that point to waning demand.

Steel is often viewed as a barometer for global growth because it’s the backbone for much of the world’s construction and manufacturing. The industry is also facing a squeeze on profit margins as prices of iron ore surge in the aftermath of Vale SA’s dam collapse in Brazil.

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Posted By : Ratan Singh on Mon, 11 Feb 2019
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