MUMBAI (Commodity Online) By Geena Paul: Even as the world is recovering from the recession impact, global steel market is witnessing a surge in demand and 2010 is all set to give a big boost to the iron ore and steel industries of the world.
According to analysts, global economic recovery is expected to lead to improvement in steel demand from key consuming industries like automotives and construction, supported by the ongoing impact of government stimulus spending and restocking of inventories.
Global steel demand is expected to increase 9.2% y-o-y to 1,206 million tonne in 2010. Around 98% of global iron ore demand comes from the steel industry.
In 2009, China tried its level best to bring down the prices during the iron ore price negotiations. But that may not work this year.
Steel industry is on a recovery path with demand rising from every corner. China and India are the two main powers that push the steel demand across the world.
World will return to production growth over the next three months and most likely in the first quarter of 2010. Korean and Indian steel consumption demand has also been rising strongly.
Stainless steel demand is set to grow by 5.5% a year by 2020. As expected, lower levels of around Rs 20900/Mt, have enticed buyers in to the counter leading it to gain appreciably last month.
Indian steel prices are set to move up in 2010, after sliding nearly a fifth year-on-year, sparked by a global demand recovery, but the 2008 peak looks distant.
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