The short term market outlook has been revised downwards again
According to the latest OECD Economic Outlook,released on 27 November 2012,the global economy is weakening again driven by a significant drop in confidence.High and,in some countries rising,unemployment is further reducing confidence and spending.This is taking place against a background of deleveraging,simultaneous fiscal consolidation across countries and weakening global trade.
While a recession is ongoing in the euro area,the US economy is growing but at a pace below what was expected earlier this year.A slowdown is also taking place in many emerging market economies,partly reflecting the impact of the recession in Europe.After expanding by 3.7%in 2011,global GDP growth is forecast to decline to 2.9%in 2012,with a moderate gain in momentum to 3.4%in 2013.
According to the World Steel Association,world apparent finished steel use is expected to increase by 2.1%in 2012 and by 3.2%in 2013,following growth of 6.2%in 2011.Forecasts for 2012 and 2013 were revised downwards by 1.5 and 1.3 percentage points,respectively,compared to the April 2012 Short Range Outlook.In 2012,apparent steel use is expected to decrease by 0.3%in developed economies,reflecting a contraction of 5.6%in the European Union that is partly offset by growth of 7.5%in North America.In emerging markets,apparent steel use is expected to grow by 3%in 2012,with Chinese steel consumption rising by 2.5%.In Africa,Central and South America,and Other Europe growth rates for steel consumption are expected to be 5.8%,3.8%and 3.8%in 2012,respectively.
The future of steel,as a material,is favorable but the industry faces big challenges.
