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Global Steel Demand to Grow by 1.3%

Global Steel Demand to Grow by 1.3%

Demand is on course to expand 1.3% in 2017 to 1.535 billion tons and a further 0.9% in 2018 to 1.549 billion tons, World Steel Association said, Fortune reported.

In 2016, global steel production rose 0.8 percent to 1,628 million tonnes, with China accounting for 808.4 million tonnes, or 49.6 percent, of the total world output.

The steel industry, worth about $900 billion a year, is seen as a gauge of the world's economic health. "After the demonetization shock, the Indian economy is expected to resume growth", Worldsteel said.

China will likely see flat demand this year, followed by a two per cent decline in 2018, stated Platts, S&P Global, a leading independent provider of information and benchmark prices for the commodities and energy markets.

"However, China, which accounts for 45% of global steel demand, is expected to return to a more subdued growth rate after its recent short uplift", it said in a statement.

Worldsteel economics committee chairman TV Narendran said steel demand recovery in 2016 was stronger than expected with the upside mostly coming from China.

This sector has been a major driver of steel demand in developing countries on the back of urbanization, but activity in the developed economies since the 2008 financial crisis has been more subdued.

An investigation by Washington into steel price dumping by China and other exporters to the United States could trigger retaliatory measures against American finance and high-tech, reports the China Daily.

Country produced 83.5 million tonnes of finished steel products the previous year.

The World Steel Association forecasts global steel demand will increase 1.3% this year as developing economies stabilize and the USA plans infrastructure spending, but China's demand is expected to slow.

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