The World Steel Association (worldsteel) released its short-term steel demand forecast, of which the growth will be 1.8% to 1.8145 billion tons for 2023 and be 1.9% to 1.8491 billion tons for 2024.

The chairman of Worldsteel's Economics Committee Máximo Vedoya said that the EU and the US steel market have been much affected by the high inflation and high interest rates from late 2022 till now and most steel market activities had been showing weak demand with significant downward.

Considering the delay effect of the contractionary monetary policy, it is predicted that the steel demand of the developed economies will recover gradually in 2024, and the emerging economies will grow faster, especially the Asia region which is with a firmer standing.

For the Chinese market, Máximo Vedoya predicted the real estate market will turn more stable in late 2023, China government measures might boost the steel demand significantly, but the 2024 steel demand in China is still uncertain as the country's economy is at the point of structure turning which will also increase the market fluctuation and uncertainty.

Other uncertain factors like the wars in Russia and Ukraine and Israel and Palestine/Gaza region all might lead to oil price increases and the geopolitical and economic situation chaotic to increase the risk.

However, aggressive developing activities have been shaping in developed countries, including the effects of efforts to reduce carbon emissions.

In general, worldsteel thinks inflation will improve in 2023 and the monetary tightening cycle should end in 2024.