Despite eventual possible economic fallout from rising oil prices, 1990 is likely to be a peak year for steel consumption in the Western World, said the secretary general of the International Iron and Steel Institute. Lenhard Holschuh was addressing delegates to the institute’s recent 24th annual conference at Sydney, Australia. Institute member countries produce almost 500 million tonnes of steel annually, virtually all of Western World production.
Japan’s apparent consumption this year is expected to reach 99 million tonnes of crude steel equivalent, up 5 million tonnes from 1989. The increase is attributed mainly to buoyant domestic business investment and consumer spending.
Steel demand should remain firm in the major European Community markets, with the exception of the United Kingdom. EC consumption this year is expected to reach 122 million tonnes, about the same as in 1989.
Consumption in the U.S. should remain marginally above the 100-million-tonne mark. In Canada, a sharp fall in steel consumption is anticipated.
Australia and South Africa are also expecting a lower level of steel demand this year, but consumption in the other industrialized economies of Western Europe should remain firm.
In total, the industrialized countries are expected to consume 369 million tonnes of crude steel in 1990, down by about 3 million tonnes from last year.
Developing countries, on the other hand, are likely to consume about 5 million tonnes more steel in 1990 than last year.
Total Western World consumption of crude steel this year is expected to be 497 million tonnes. Total world consumption this year is expected to reach 779 million tonnes, 7 million tonnes below last year’s record level.
For 1991, the institute is forecasting a further drop in total world consumption, to 773 million tonnes.
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