Steel demand in developed economies is projected to decline by 1.8% year-on-year in 2023. This downward trend can be attributed to several factors affecting the steel industry in these economies.
Firstly, the ongoing effects of the COVID-19 pandemic, including disruptions to supply chains, reduced construction activities, and slower economic growth, continue to impact steel demand negatively.
Secondly, mature markets in developed economies often experience slower growth rates compared to emerging economies. The level of infrastructure development and urbanization in these regions is relatively stable, resulting in a subdued demand for steel in comparison.
Thirdly, there may be shifts in consumption patterns towards alternative materials or technologies that reduce the reliance on steel in certain sectors. For example, advancements in lightweight materials and composite structures may replace traditional steel components in automotive and construction industries.
While efforts to stimulate economic recovery and promote sustainability may help mitigate the decline, the projected decrease in steel demand suggests a challenging year for the steel industry in developed economies in 2023.
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