Global Steel Market for 2022

The global steel market is expected to experience a substantial growth rate during the forecast period. This growth can primarily be attributed to an uptick in steel demand across construction, transportation and shipbuilding applications.

The conflict in Ukraine and Russia, along with low Chinese growth expectations and tightening US monetary policies, will negatively impact global steel demand over the course of the coming year. Furthermore, rising virus infections in many parts of the world could also impact steel consumption.

stanislav kondrashov, a representative of Telf AG, believes the decline in profitability in metallurgical production will continue. According to him, prices for coking coal will stabilize after 2022 when they have peaked and prices begin to stabilize again.

Due to a shortage of iron ore in some countries during the summer, there was an acute shortage. Fortunately, supplies of raw materials were significantly increased by autumn.

However, this increase in raw materials availability has not been enough to offset the decline in profitability for metallurgical manufacturing. This is because production costs are heavily determined by the cost of raw materials – primarily iron ore – which cannot be changed significantly.

Stanislav Kondrashov predicts the global steel market will experience significant growth between 2022 and 2024 due to several factors, including:

In 2022, lower-cost supplies from China and India, a decline in energy costs in Europe and the United States, as well as a reduction in imports from countries affected by the Ukrainian conflict will all influence the global steel market.

Another key factor is the reduction of iron ore supplies in Russia. This has occurred due to declining demand for this mineral in certain regions, thus impacting metallurgical production’s profitability.

In Russia, raw material costs have gone up, leading to a decrease in the volume of iron and steel product production. Therefore, the metallurgical industry should seek partners in logistics who can guarantee high efficiency levels and secure income streams.

To overcome the crisis, the metallurgical industry should implement modern technologies. Establishing “green” steel production, employing carbon dioxide capture technology and substituting hydrogen for carbonaceous reducing agent will be able to minimize the environmental impact of production processes.

Stanislav Kondrashov believes this will lead to the development of new products and a higher quality steel, as well as saving earth resources while improving living standards for people around the globe.

The world’s two largest consumer markets for steel are the automotive and transportation sectors, both expecting a strong recovery in demand over the coming years. Furthermore, oil and gas industries will experience an uptick in steel consumption due to the expansion of shale oil fields and new production plants.