Oct 22, 2020
World Steel Association Points Out Speedy Recovery of Steel Using Sectors
2020-10-30
The sector to witness dramatic impacts was the automotive sector.
SEATTLE (Scrap Monster): The steel using sectors seem to be recovering faster than other sectors such as hospitality, aviation and entertainment, noted the recent edition of Short Range Outlook (SRO) by the World Steel Association (worldsteel). In particular, manufacturing sector is witnessing strong rebound, it said.
The increasing focus on implementing public projects by various governments resulted in highly resilient construction sector. As per estimates by the trade body, the construction sector in emerging economies such as Turkey, Mexico and Brazil are likely to see double-digit contraction in 2020. On the other hand, the government stimulus measures are likely to lead to strong rebound in Chinese construction sector. Also, the recovery will remain slow in 2021.
The sector to witness dramatic impacts was the automotive sector. The automotive production plummeted by nearly 70-90% in many countries during April this year. The global automotive production recorded year-on-year decline by 34% in Q2 this year. Meantime, robust domestic demand has resulted in faster recovery in China.
The huge contraction in machinery sector in Q2 2020 was led by China, the EU, the U.S. and Japan. However, the decline in machinery output has started decelerating since May this year, worldsteel SRO said.
Source: Scrapmonster
