Global steel demand in 2021 will increase by 5.8% compared to the previous year, to 1.874 billion tonnes after a decrease by 0.2% in 2020, to 1.772 billion tonnes, according to the World Steel Association (Worldsteel).
According to the association’s short range outlook released on Thursday, steel demand will see further growth of 2.7% in 2022 compared to 2021 and reach 1.925 billion tonnes.
The current forecast assumes that the ongoing second or third waves of infections will stabilise in the second quarter and that steady progress on vaccinations will be made, allowing a gradual return to normality in major steel-using countries.
Commenting on the outlook, Mr Al Remeithi, the Chairman of the Worldsteel Economics Committee, said, despite the disastrous impact of the pandemic on lives and livelihoods, the global steel industry was fortunate enough to end 2020 with only a minor contraction in steel demand.
“This was due to a surprisingly robust recovery in China, with growth of 9.1%. In the rest of the world steel demand contracted by 10%. In the coming years, steel demand will recover firmly, both in the developed and developing economies, supported by pent-up demand and governments’ recovery programmes. However, for most developed economies a return to the pre-pandemic levels of steel demand will take a few years,” the Worldsteel’s press release said.
According to the association, in China, steel demand is expected to grow by 3% in 2021, to 1.025 billion tonnes, and in 2022 by another 1%, to 1.035 billion tonnes.
Steel demand in the CIS countries in 2021 will increase by 3.4%, to 60.2 million tonnes, and in 2022 it will increase by 3.2%, to 62.1 million tonnes.
Steel demand in the EU (27) and the United Kingdom this year will increase by 10.2%, to 154.9 million tonnes, and in 2022 it will increase by 4.8%, to 162.4 million tonnes.
The USMCA countries will increase consumption this year by 7.6%, to 122.6 million tonnes, and in 2022 by another 4.6%, to 128.3 million tonnes. Central and South America will see 10.6% growth this year and 4.2% growth next year, to 42.7 million tonnes and 44.5 million tonnes, respectively.
Africa will increase demand by 8.3%, to 38.6 million tonnes this year, and will see an increase of 5.9%, to 40.9 million tonnes in 2022, the Middle East in 2021 is expected to increase consumption by 5.4%, to 48.5 million tonnes, and in 2022 by 3.3%, to 50.1 million tonnes.
The countries of Asia and Oceania in 2021 will increase demand by 4.7%, to 1.364 billion tonnes, and in 2022 by 2%, to 1.392 billion tonnes.
In the outlook for countries, in particular, it is reported that India in 2021 is expected to increase steel consumption by 19.8% compared to 2020, to 106.1 million tonnes, in 2022 by 5.9%, to 112.3 million tonnes, the United States will increase demand by 8.1%, to 86.5 million tonnes, and in 2022 by 4.3%, to 90.2 million tonnes. Japan this year will increase demand by 6.5%, to 56 million tonnes, and in 2022 by another 5%, to 58.8 million tonnes.
South Korea in 2021 will increase steel consumption by 5.2%, to 51.5 million tonnes, and in 2022 by 2.5%, to 52.8 million tonnes. The Russian Federation will increase demand by 3% in 2021 and also by 3% in 2022, to 43.8 million tonnes and 45.1 million tonnes, respectively. Germany this year will increase demand by 9.3%, and next year by 5.3%, to 34 million tonnes and 35.8 million tonnes, respectively. Turkey in 2021 will increase demand by 18.7%, in 2022 by 5.7%, to 35 million tonnes and 37 million tonnes, and Vietnam will demonstrate growth by 5% and by 7.6%, to 24.5 million tonnes and 26.3 million tonnes, respectively. Mexico will increase demand in 2021 by 7.5%, to 23.4 million tonnes, and in 2022 by 5.5%, to 24.6 million tonnes.
The Ministry for Development of Economy, Trade and Agriculture of Ukraine and PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) signed a memorandum for the implementation of new investment projects: the company plans to invest about $1 billion in new projects for environmental modernization and production development.
According to a press release from the ministry, the memorandum was signed on Wednesday by Minister Ihor Petrashko and ArcelorMittal Kryvyi Rih CEO Mauro Longobardo.
The Steel Billion, a new investment program of ArcelorMittal Kryvyi Rih, will focus on environmental impact reduction, company sustainable development and introduction of circular economy principles: efficient use of resources, recycling and waste utilization.
“ArcelorMittal is a large investor, exporter and employer. Today we agreed that the company would significantly increase investments in Ukraine, and introduce advanced, environmentally friendly technologies in steel making, which is one of our strategic economy sectors. We expect that investment activity in our country will recover gradually after the crisis of 2020, and cooperation with the global largest steel producer will become an incentive for investors to contribute to Ukraine,” Petrashko said
Longobardo said that during 15 years of operation in Ukraine, the company has invested over $5 billion in production development, and now offers the new program Steel Billion, according to which about $1 billion will be invested into environmental modernization.
“We continue to implement large investment projects and are gradually transforming ArcelorMittal Kryvyi Rih into a modern European production. Steel Billion is our new program for Ukraine. By this program, we will finance green steel-making technologies and de-carbonization projects. This fully complies with ArcelorMittal Group’s strategy to become carbon-neutral. Actually, steel already has a lower carbon footprint compared to other materials: no other material has the same recovery and reuse capacities. The initiatives to be confirmed under the Memorandum today are a step forward in Ukraine’s industry. We count on cooperation and comprehensive support of the government on this way,” Longobardo said.
On April 14, Prime Minister of Ukraine Denys Shmyhal met with ArcelorMittal Kryvyi Rih Board Chairman Lakshmi Mittal. The meeting was attended by Deputy Prime Minister of Ukraine, Minister for Strategic Industries of Ukraine Oleh Urusky, Petrashko and representatives of ministries.
The head of the Ukrainian government welcomed the signing of a memorandum between the Ministry of Economy and the enterprise to support investment projects for the period 2022-2032. Shmyhal said that the signing of the memorandum was made possible thanks to the law initiated by President of Ukraine Volodymyr Zelensky on state support for projects with significant investments.
“Together with the President and Parliament, we launched effective tools that enhance the investment attractiveness of Ukraine. Today’s memorandum is one of the first successful examples when the large international company plans to use the appropriate tools and increase investments and the number of jobs in Ukraine,” Shmyhal said.
The head of government added that according to the memorandum, a significant part of the investments will relate to projects that reduce the negative impact on the environment. At the same time, the Prime Minister thanked the company’s management for socially important initiatives, the development of medicine and the support of the communities where the enterprise is located.
“The government calls on socially responsible business to join state initiatives in Ukraine, when investors become not only business partners of the state and communities, but also actively participate in the development of the region where they work. The government, for its part, is ready to comprehensively contribute to the further development of mutually beneficial relations and will continue work to improve the investment climate,” the Prime Minister said.
The Memorandum provides for the following areas of development and investment: green metallurgy, which contributes to less pollution and reduced carbon footprint; sustainable development of iron ore mining – continuation of mining activities for 30 years; creation of new industries, in particular rolling and bar mills; modernization of existing facilities; circular economy and waste management (utilization of biomass, streamlining of CO2 emissions, processing of slags and sludge).
National bank of Ukraine’s official rates as of 15/04/21
Source: National Bank of Ukraine
The visit of the Ukrainian delegation headed by Deputy Prime Minister for the reintegration of the temporarily occupied territories of Ukraine Oleksiy Reznikov to Israel resulted in the solution of a number of important issues for the country, in particular, to overcome the COVID-19 pandemic. The corresponding statement was made by the Ambassador of Ukraine to Israel Yevhen Korniychuk on his Facebook page.
“I want to thank all the delegates for their active position in the work and significant contribution to the issue of reaching agreements in cooperation with Israel. Together, we solved a number of important issues for our country, in particular, interaction in the field of trade, investment, medicine and in overcoming the COVID-19 pandemic,” the diplomat said.
He said that an important aspect of the negotiations was the completion by Israel of the second phase of trials of its COVID-19 vaccine in mid-summer.
“The Ukrainian side proposed to conduct the third stage of testing in Ukraine with the subsequent possibility of producing a vaccine, including at our facilities. Israel is still studying this proposal and, I hope, it will be received positively. It is already clear that the pandemic of coronavirus infection will drag on for more than one year in the world. And the production of the vaccine, its availability for our citizens is a very sensitive and important issue for us,” Korniychuk said.