Released on: December , 2009, 4:43 am
Author: Balli
Industry: Industrial

Balli Steel, one of the world’s largest privately owned independent commodity traders, anticipates that the global steel market will continue its recovery during 2010. Following a fall in apparent steel usage of approximately 15% in 2009, Balli Steel believes that usage could increase by up to 9% next year. However, consumption levels are unlikely to reach their 2007 peak until 2012 and recovery is liable to be driven by the Far Eastern markets, especially China, as European markets continue struggling.

Nasser Alaghband, Director of Balli Steel commented: “We are anticipating that the steel market will continue its recovery next year but growth is expected to be moderate and driven by emerging economies, with China’s influence continuing to be critical. There is a danger that consumption growth will not match the increased production capacity which has been created in recent years, which could lead to the possibility of oversupply.”

The economic downturn has severely affected demand for steel with apparent usage expected to fall by -32.6% in 2009 to 122 million metric tonnes. This fall in consumption has led to a slowdown in production and Balli Steel estimates that many of the mills across Europe are operating at between 40% and 60% capacity.

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