despite the lingering risk of price fluctuation in raw materials, the global steel industry will see a 7 to 10 percent increase in demand next year over this year, according to a report by the international iron and steel institute (iisi) on monday (oct. 3).
the brisk projection was made in the iisi's annual short-range outlook for steel demand, issued at its 39th annual conference at the grand intercontinental hotel in seoul.
``apparent steel demand is forecast to grow 1,040 to 1,053 million tons in 2006 from a total of 972 tons in 2004. this is a growth of 4 to 5 percent over the two-year period,' iisi secretary general iran christmas said in the opening session.
``the strongest growth continues to come from china, the world's largest steel consumer, which should see a 10 percent increase in steel demand in 2005 and a further 7 to 10 percent growth next year.'
but he added that the cost of raw materials and energy continue to represent a major challenge to the world steel industry.
the global steel industry, which once suffered from a massive supply and demand gap four years ago, has enjoyed ``a new era of steel' since steel demand exploded in emerging economies, including china, india, russia and brazil, in 2003.