Lingering uncertainty on the global economic outlook, as we reach the end of the commodity cycle, has had a detrimental impact on steel with an almost universal downward revision to our steel demand and production numbers.
The weakness of the Chinese property market has now spread like wildfire to the non-residential construction sector and the manufacturing industries. This weakness will have a broader impact, particularly in Asia and other commodity exporting regions, which rely on Chinese growth. However, there are also other factors to consider.
Wood Mackenzie's economics team have lowered their overall forecasts for 2017-2018 on the back of an expected exit of Greece from the Eurozone and monetary policy tightening in the United States. This has resulted in a downwards revision to steel consumption of 9Mt in Europe and 2.5Mt in North America in 2035.
Apart from widespread economic weakness there are several other critical themes that have emerged over the summer…
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As global demand weakens and commodity prices fall, we're seeing a challenging environment in the metals and mining industry. Mining companies are increasingly coming under pressure to reduce operating costs, causing many to shift their strategic planning, delay new investments and look to long-term future growth.
This Steel Long Term Outlook report provides a detailed breakdown of global supply and demand balances in this market, as well as price forecasts.
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Commodity market report | Sep 2015
Global steel long-term outlook Q3 2015
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