With only two months to go in the year of 2007, IISI, a professional industrial institute, has established that the demand for steel, iron and other certain alloys in this year is expected to see an increase of 6.8% contributed by Brzail, Russia, India and China.
The International iron and steel Institute (IISI) has forecasted, "2007 will be another strong year for the steel industry with apparent steel use rising from 1,120.9 million metric tonne in 2006 to 1,197.6 million metric tonne in 2007, an increase of 6.8 per cent".
Related Articles
Article Tools
In value terms, BRIC countries is expected to account for 516,000 tonnes in 2007 and 573,000 tonnes by 2008, while the rest of the world is predicted to account for 799,000 tonnes this year and 834,000 tonnes in 2008.
"Overall, 77 per cent of world growth in 2007 and 71 per cent in 2008 would take place in BRIC," it said.
IISI forecasts that India's apparent steel use point to an increase of 13.7 per cent in 2007 and 11.8 per cent in 2008 in the demand for steel. Besides, China's apparent steel use is expected to grow by 11.4 per cent in 2007 and 11.5 per cent in 2008, accounting for 35 per cent of the world total.
Very positive developments have been predicted for the Russian market, where growth of 25 per cent for 2007 and 9.5 per cent for 2008 are led mainly by the energy and construction sectors. Apparent steel use in Brazil is expected to increase by 15.7 per cent for 2007 and 5.1 per cent for 2008, with strong fixed capital formation partly driven by public investment programmes, the IISI statement said.
For 2007, steel demand in the NAFTA region appears less robust than previously anticipated, particularly in the residential construction sector.
A negative contribution to growth also derives from inventory reductions. In 2008, improved prospects for the overall market conditions lead to positive forecast of 4 per cent growth, it said.
"Although global economic risks have increased, the IISI forecast assumes that the recent credit market volatility will not move the US economy into recession. North Africa, South Africa and the Middle East are emerging as strong growth regions as higher energy and raw material prices associated with growth in China, as well as other developing nations, increase income and boost investments in these regions," IISI John Surma Chairman said.
The International iron and steel Institute (IISI) is one of the largest and most dynamic industry associations in the world. IISI represents approximately 180 steel producers (including 19 of the world's 20 largest steel companies), national and regional steel industry associations, and steel research institutes.
