The growth of global steel demand in 2022 is expected to decrease

Due to regional differences, the impact of the conflict between Russia and Ukraine varies, depending on the direct trade and financial risk exposure of each region to Russia and Ukraine. The conflict has had a direct and devastating impact on Ukraine, and the EU has also been affected due to its high dependence on Russian energy. Moreover, the impact of the conflict between Russia and Ukraine has also affected the world due to the rise of energy prices (especially the raw materials required for steel production), resulting in the continuous interruption of supply chains in some regions. This problem has plagued the global steel industry even before the outbreak of the conflict.

The impact of the conflict between Russia and Ukraine continues to spill over. Superimposed on the slowdown of China's economic growth, the World Steel Association predicts that the growth of global steel demand in 2022 is expected to decrease. In addition, the continued outbreak of COVID-19 in some parts of the world and the rising interest rate have also brought risks of economic downturn. The expected tightening of US monetary policy will increase the financial vulnerability risk faced by emerging economies.

In 2023, the global steel demand forecast is highly uncertain. The World Steel Association said that the premise of this prediction is that the conflict between Russia and Ukraine will end in 2022. In addition, the geopolitical pattern surrounding Ukraine will have an extremely far-reaching impact on the global steel industry, including the adjustment of Global trade pattern, the transformation of energy trade and its impact on energy transformation, and the continuous reconfiguration of the global supply chain.