Strong Rebound for Global Steel and Metals Industry but Downside Risks Remain
Since the pandemic, the U.S. and Europe have benefited from pent-up demand to boost economic growth, but the war in Ukraine fuels recession fears from its skyrocketing energy prices. Political unrest has caused a ripple effect of challenges that leave the global steel and metals industry vulnerable.
In the most recent steel and metals report, our economists discuss which countries will lead the growth of this industry for the remainder of 2022. We also uncover the potential risks for international business in the coming months. If your business has a connection to the steel and metals industry, this report provides the latest economic trends to keep you informed.
The following highlights touch on the outlook of additional countries determining the future of the global steel and metals industry:
- If high inflation lingers into 2022, the U.S. metal and steel industry would experience a 1% decrease of production in 2023. The good news – manufacturers that moved their overseas production back to their homebase in the U.S. provide economic stability.
- A subdued real estate sector and ongoing COVID-19 lockdowns are troubling for China’s production of iron, steel, and metal casting materials.
- In the Netherlands, construction projects remain in high demand, but like other European countries, sky high energy prices from the Ukrainian war put pressure on this sector. The Czech Republic, Germany, the U.K., and Belgium show decreased production for the remainder of 2022.
After COVID hit the sectors particularly hard, the decline is slowly reversing. However this will take a while partially because for the steel sector in particular, is very reliant on the status of other smaller industries. The automotive sector is one sector that can determine the speed of recovery in the steel sector.
For an in-depth look at the outlook for these countries and more, view the full report here.
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