GENERAL NEWS Worldsteel outlook
The World Steel Association ( worldsteel ) released its Short Range Outlook ( SRO ) steel demand forecast for 2023 and 2024 in April this year . It forecasts that , this year , demand will see a 2.3 % rebound to reach 1,822.3 Mt . Steel demand is forecast to grow by 1.7 % in 2024 to reach 1,854.0 Mt . Manufacturing is expected to lead the recovery , but high interest rates will continue to weigh on steel demand . Next year , growth is expected to accelerate in most regions but deceleration is expected in China .
Commenting on the outlook , Máximo Vedoya , CEO of Ternium and Chair of the worldsteel Economics Committee , said : “ In 2022 , recovery momentum after the pandemic shock was hampered by high inflation and increasing interest rates , the Russian invasion of Ukraine and the lockdowns in China . As a result , steel-using sectors ’ activity went down in the last quarter of 2022 . This , combined with the effect of stock adjustments , led to worse than expected contraction in steel demand .
“ Persistent inflation and high interest rates in most economies will limit the recovery of steel demand in 2023 , despite positive factors like China ’ s reopening , Europe ’ s resilience in the face of the energy crisis and the easing of supply-chain bottlenecks . In 2024 , demand growth is driven by regions outside China but faces global deceleration due to China ’ s anticipated 0 % growth , overshadowing the improved environment . Sustained inflation remains a downside risk , potentially keeping interest rates high .
“ As China ’ s population declines and moves to consumption-driven growth , its contribution to global steel demand growth will lessen . Future global steel demand growth will rely on reduced drivers , primarily concentrated in Asia . Investments in decarbonisation and dynamic emerging economies will increasingly drive positive momentum for global steel demand , even as China ’ s contribution to global growth diminishes .”
Steel demand in the developed economies suffered a sizable contraction in 2022 because of monetary tightening and high energy costs . After falling by 6.2 % in 2022 , it is expected to increase by 1.3 % in 2023 . In 2024 , a recovery of 3.2 % is anticipated by worldsteel .
“ The EU economy turned out to be more resilient to the energy crisis caused by the Ukraine war than initially thought . While the EU economy grew by 3.5 % in 2022 , avoiding recession , industrial activities suffered significantly from high energy costs that led to a sizable contraction in steel demand in 2022 . In 2023 , the EU steel industry will continue to feel the impact of war , other supply chain-related issues and continued monetary tightening . In 2024 , demand is expected to see a visible rebound as the impact of the Ukraine war and supply-chain disruptions are expected to dissipate . However , the outlook is subject to persisting uncertainty . After a fall of 7.9 % in 2022 , demand is expected to fall by 0.4 % in 2023 . A 5.6 % rebound is expected in 2024 ,” outlined the report .
The outlook expects U . S . growth in 2023- 2024 to be subdued by recessionary pressure . Rising interest rates , as well as land and material costs , are putting negative pressure on construction , particularly for the residential sector , while recovery in the non-residential sector is expected to continue . Steel demand from the energy sector is also expected to benefit from expanding energy production . After a fall of 2.6 % in 2022 , steel demand is expected to grow by 1.3 % in 2023 and then by 2.5 % in 2024 .
In June 2023 , worldsteel published its 2023 edition of ‘ World Steel in Figures ’. The publication provides a comprehensive overview of steel industry activities , stretching from crude steel production to apparent steel use , from indications of global steel trade flows to iron ore production and trade .
Edwin Basson , Director General , worldsteel , commented : “‘ World Steel in Figures ’ shows that most countries around the world saw a small decrease in both steel production and use in 2022 ; the lingering effects of COVID restrictions . Any increase in steel production and demand going forward needs to take the Paris Agreement framework into account , as our policy paper on climate change makes clear . The steel industry needs to simultaneously improve the efficiency of the technologies that we are currently using , and swiftly create and deploy new steelmaking technologies on a large scale . Many of our members are working hard on this and I applaud their efforts .” n
WILA starts production in North America
WILA , a tooling specialist for sheet metals , has announced the relocation of its North American headquarters to Louisville , Kentucky , and the establishment of its local manufacturing operations . This strategic move signifies WILA ’ s commitment to expanding its presence in the North American market and leveraging the region ’ s dynamic manufacturing ecosystem .
The decision to relocate its corporate headquarters and establish manufacturing facilities in Louisville was driven by several key factors . Louisville ’ s central location within the United States provides convenient access to major transportation networks , enabling efficient distribution of WILA ’ s products throughout North America . Additionally , the city ’ s vibrant manufacturing industry , skilled workforce and business-friendly environment align with the company ’ s growth strategy .
WILA ’ s investment in Louisville represents a significant milestone in the company ’ s journey , as it aims to enhance its customer service capabilities and strengthen relationships with existing and prospective clients in North America . By establishing local manufacturing operations , WILA will be able to reduce lead times , increase flexibility and deliver tailored solutions to meet the specific needs of the region ’ s manufacturing sector .
“ Our new facility in Louisville will feature the latest manufacturing technologies , enabling us to deliver modern solutions across a wide range of industries . The expansion will also create job opportunities for local talent , contributing to the economic development of the region ,” added WILA .
WILA B . V . employs 350 people and has two factories in the Netherlands as well as subsidiaries in the United States and China . Its productivity-improving innovations include mechanical crowning ; the Safety-Click in New Standard Tooling ; hydraulic or pneumatic clamps ; robot-based tool changes and “ smart ” tool data management . n
www . wilatooling . com
8 | ismr . net | ISMR July / August 2023