WCA January 2015

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52 Wire & Cable ASIA – January/February 2015
From the Americas
Steel
World Steel outlook: demand is
picking up in the developed economies,
but rebalancing exerts a retardant
effect in China
The World Steel Association (worldsteel) on 6 th October
released its Short Range Outlook (SRO) for 2014 and 2015.
The SRO, issued twice a year, is informed by the chief
economists of more than 40 worldsteel member companies.
(Projections from worldsteel consider both real and
apparent steel use. Apparent steel use reflects deliveries
of steel to the marketplace from domestic steel producers
as well as from importers. This differs from real steel use,
which takes into account steel delivered to or drawn from
inventories.)
The worldsteel forecast for 2014 saw global apparent steel
use increasing by two per cent to 1,562 Mt (megatonnes,
equal to one million metric tons), following growth of
3.8 per cent in 2013. In 2015, world steel demand is
forecast to grow by another two per cent to reach 1,594 Mt.
REGIONAL SRO FORECASTS
The Americas :
 In the United States, after a decrease of -0.4 per cent
in apparent steel use in 2013, steel demand is seen
increasing by 6.7 per cent to 102.2 Mt in 2014 – a
large upward revision helped by strong growth in
the automotive and energy sectors. Steel demand is
expected to increase by 1.9 per cent in 2015.
In Mexico, steel demand is expected to grow by 6.9 per
cent in 2014 and moderate to 3.5 per cent growth in
2015.
In Central and South America most countries register
negative growth in apparent steel use, expected
to decline by -2.4 per cent to 48 Mt in 2014 from
4.2 per cent growth in 2013. Steel demand is expected
to increase by 3.4 per cent in 2015. In Brazil, apparent
steel use will contract by -4.1 per cent in 2014 to
25.3 Mt and will rebound by only 1.5 per cent in 2015.
Europe :
 The recovery in the European Union having gained
further momentum in 2014, steel demand has grown
considerably by four per cent to 145.9 Mt after
increasing by 0.8 per cent in 2013. The improvement
reflects a pickup in steel-using sectors of most EU
countries, notably the United Kingdom and Poland.
Apparent steel use in 2015 is projected to grow by
2.9 per cent. In Germany it is expected to show 3.2 per
cent growth to reach 39.1 Mt in 2014 and 2.3 per cent in
2015.
CIS:
 Due to the crisis in Ukraine the outlook for apparent
steel use in the former Soviet Republics of the CIS in
2014 has been lowered significantly by -3.8 per cent to
56.9 Mt following 2.8 per cent growth in 2013. In Russia
the weak trend in steel-using sectors in the second
half of 2013 continued, leading in 2014 to -0.5 per cent
growth reaching 43.2 Mt. In 2015 this will recover by
1.1 per cent to reach 43.7 Mt. In Ukraine, apparent steel
use is expected to decline by -19 per cent in 2014. In
2015, assuming a stabilisation of the political situation,
CIS steel demand will grow by 1.9 per cent.
China:
 Growth in apparent steel use in China is expected
to slow to just one per cent in 2014 to 748.3 Mt as
Beijing’s efforts to rebalance the economy weaken
business sentiment and curtail investment. Apparent
steel use will grow by only 0.8 per cent to reach 754.3
Mt in 2015, although possible use of targeted stimuli
in response to slower growth in GDP (gross domestic
product) could improve the outlook.
India:
 Steel demand in India is expected to grow by 3.4 per
cent to 76.2 Mt in 2014, following growth of 1.8 per cent
in 2013. A further six per cent growth in demand is a real
possibility for 2015.
Japan:
 In Japan, following a 2.1 per cent increase in apparent
steel use in 2013, steel demand in 2014 is expected to
increase by a further 2.3 per cent to 66.8 Mt. However,
with the fading of the positive impact of “Abenomics”
(increased government spending together with
unprecedented monetary easing, as promoted by Prime
Minister Shinzō Abe), steel demand is seen declining by
-1.5 per cent in 2015.
Middle East and North Africa:
 In the MENA region, steel demand has been revised
downwards but is still expected to grow by 3.3 per cent
to 67.6 Mt in 2014 and by 6.6 per cent in 2015.
Favouring ingenuity over layoffs, a US
West Coast steel company not only
survived the hard times but is flourishing
“The ‘made in America’ culture that had some major
corporations taking care of their workers from cradle to
grave was shed like an old sweater in the Great Recession.
Assembly lines were shaved to the bone. Layoff notices
peppered lunchrooms.”
Debra Gruszecki, a staff writer for the Press Enterprise
(Riverside, California), had a purpose in revisiting the grim
2007-2009 period in US industry. A recent issue featured
her profile of California Steel Industries, which laid off no
one – even as output of its flat-rolled product plummeted
from 2.1 million tons pre-recession to 800,000 tons in 2009.
Not only did the Fontana-based company survive: it was in
fighting trim when steel orders began to snap back in 2010.
Production for the year revived to 1.3 million tons.
The steel company that industrialist Henry J Kaiser founded
in the early years of World War II has operated as California
BigStockPhoto.com Photographer: Aispl