You cannot think about economic development without having Steel in mind, as it is, even with the pandemic and the economic world crisis it brought, a sector that has been recovering little by little. Therefore we consider it important to be aware of the Steel industry prospection for 2022.
Steel has a fundamental role in society’s economic development; therefore, it plays a main role as its historic importance is undeniable and as time went through the industry became stronger. It is part of a sector that has a key role in construction and manufacturing worldwide.
According to the World Steel Association, in their Short Range Outlook (SRO) for 2021 and 2022, published in the first quarter of this year, the demand of Steel was expected to grow 5.8% in 2021 and to reach 1,874 million of tons/m, after a reduction of 0.2% in 2020.
There is also an additional rise in steel demand for 2022 of 2.2%, which means 1,896.4 ton/m. This forecast assumes that, due to the worldwide progress in vaccination, the spread of COVID-19 would be less harmful than in previous phases.
In addition, it is expected that thanks to the combination of late orders, along with inventory rebuilding and vaccination progress, the demand for steel will keep recovering for 2022.
Steel Industry in Latin America
According to the Latin-American Steel Association (Alacero), it is also expected that for 2021, steel production in Latin America to reach 65 million tons, which represents a 16.1% rise in respect to 2020; in 2022 we would see if this estimation was correct as this year’s statistics are not over yet.
In our region, Brazil is the biggest steel producer, while Mexico takes second place and according to the World Steel Association, in 2021, Mexico had a substantially bigger recovery than expected, thanks to industrial activities, especially in the automotive sector.
Steel after COVID
We are aware that 2020 represented a low point for the industry due to the pandemic, as it generated a low demand with faults in supplies and restructuration in commercial relationships.
The Steel industry is a key role in the metal-mechanic chain development; also, it is present in all daily activities, making our day-to-day lives easier due to the multiple uses we give to this material
At DINCO, we will keep an eye on the steel industry prospects for 2022, as it is clear that economic development cannot be without this important sector.