Tuesday, October 13, 2009

Steel industry recovering after Chinese stimulus - Times Online

The Times online commenting on a report from the World Steel Association paints a more optimistic picture for the steel industry for 2010.

The long night is almost over for steelmaking, which will enjoy a strong recovery in 2010, the World Steel Association (WSA) predicted yesterday.

Exceptionally strong consumption in China means that demand for the steel output of the world’s mills will rise by 9.2 per cent next year, a recovery to 2008 levels, the association said.

Even the UK should get a big boost. After a near-collapse in the market this year, with demand falling by more than a third in Britain, steel use is expected to rise by 25 per cent next year.

Daniel Novegil, chairman of the WSA’s economic committee, said that the global recovery was stronger than the organisation had predicted in April.

Read the full report at Timesonline

It would probably take a 40% increase in demand in the West to take us back to 2008 levels and whilst this would be welcome I feel it is unlikely that the recovery will be this rapid.


No comments: