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Oriental trend decline in steel demand

As is well known stability and growth of any production is directly dependent upon continued demand for the products. After all, with a decrease in consumer interest in the manufactured range of products production decline is inevitable. That is why according to the forecasts of the International Association of steel (World Steel Association) shortly steel semi-finished products of both ferrous and stainless grades, expect another wave of price cuts.

This circumstance is due to lower demand for steel products in China and some other Asian countries. Some instability developed European countries is reflected not the best on the economic situation in developing their younger brothers. In particular unrest in financial markets and the political arena on the background of the presence of a number of unsolved structural problems have led to a decline in interest in the steel products in the eastern region. Although in the following year on the redistribution of some of the situation should normalize a little.

Currently, the Chinese government, attempting to balance the domestic economic situation in the country, constantly freezes and cuts investment, some large-scale financial projects. Therefore, the demand for steel of various grades, which grew in 2013 to six percent (compared to three per cent in 2012), the beginning of next year will fall again by three percent. In India, on the contrary, due to the structural reforms in all the basic areas of industry and the economy demand for steel will continue to increase the range and reach by 2014 the six percent increase.

Japanese steel market after numerous transformations relatively leveled and secured growth of such products consumption by one percent. An important role in the present state of affairs, the government played a country. However, due to the introduction of new consumer taxes and rising prices for energy sources in the future, the situation does not look so rosy, and assumed decline in demand for semi-finished steel by 1.6%. Not the least role in this unfortunate fact has played a number of the transfer of production from Japan to other countries.

Similar unrest in the eastern region and the lack of stability in the steel market are capable enough to affect adversely and Russian producers. Therefore, many enterprises in the industry have already switched to a mode-based economy, and actively implement energy-saving technologies.

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