Metals and Steel Industry Trends May 2024

Global metals and steel performance slows down in 2024

• We expect global basic metals output to slow down to 2.2% this year, after a 5.7% increase in 2023. Main reason is lower production in China and India.

• We forecast global metals and steel production to remain subdued in 2025. However, in advanced markets the sector should benefit from a demand recovery.
• Sustainability-led demand for metals like copper and aluminium should lead to higher sales prices and margins in the long-term

US metals and steel demand rebounds after two years of contraction

• We expect US basic metals output to increase by 3.2% in 2024 and 4.5% in 2025, mainly driven by government stimulus like the Inflation Reduction Act.

• US metals and steel producers have a competitive advantage over their peers in Europe and Japan due to lower energy prices.

Woes in the Chinese steel sector

• Chinese steel producers are suffer from the ongoing liquidity woes in the property sector and subdued economic growth.

• Steel supply exceeds demand, putting prices and margins under pressure.

Positive sector outlook in India

• The country´s rapid economic development, urbanisation, and growing population will sustain metals and steel production in the mid to long term.

European producers face competitive disadvantages

• The sector has suffered from high interest rates, an industrial recession and weak external demand.

• We expect Eurozone metals and steel production to rebound by more than 3%.
• Eurozone metals and steel producers face a permanent competitive disadvantage compared to other countries in terms of energy costs. Investment in cleaner production capacity is another challenge.
   

Please download the report below to read more about Industry trends metals and steel