In 2017 the steel industry hit the ground running, with demand, production and prices on the up in China, Europe and the USA. Overall we expect this to be a year of recovery. Global finished steel demand is expected to grow 2.2%, to 1.52 billion tonnes. Brazil and Russia are past the worst, manufacturing remains strong in Europe, the stock cycle will be expansionary in the USA and China, and higher oil prices will lift steel demand in oil-dependent economies, most notably in the Middle East.An important 2017 development is the expected rise of global utilisation rates after a four-year decline. China will cut another 50 Mtpa of capacity in 2017. At the same time, protectionist measures will undermine export opportunities for Chinese steelmakers. This should allow steelmakers in most regions to increase output and utilisation rates. Crude steel production is expected to expand by 1.6% globally and by 3% ex-China.