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[Ferro-Alloys.com] World steel consumption is likely to decline by 2.2pc in 2020 because of the Covid-19 pandemic and resulting economic downturn, but is expected to rebound by 3.8pc next year and then grow by 3.6pc in 2021, the OCE said. Steel production is expected to follow a similar pattern to consumption over the period.

 

China's September steel production was almost 40pc above the level a year earlier. "This has placed the country in a position of unprecedented dominance in steelmaking globally, with numerous other countries continuing to face manufacturing and steelmaking recessions," the OCE said.

 

China will release its 14th five-year plan for 2021-25 in March next year. The plan is expected to include a renewed focus on infrastructure rollouts and more rapid urbanisation, particularly in central and western China, which will in turn impact steel demand, the report said.

 

Steelmaking outside China is showing signs of recovery, led by growth in other Asian countries. South Korean production has recovered to around pre-Covid levels. India's steel production has shown solid growth in recent months, but it is not yet clear how rapidly its long-held plans to expand domestic steel production will proceed in light of disruptions related to Covid-19 and high iron ore prices, which affect the viability of proposed steel plants, the OCE said.