Global steel production this year will be less than in the past two years.
The increase in world steel production next year may not be as expected due to the corona virus. The WSD Institute summarizes the reasons for this as:
1) Consumers become more cautious in buying.
2) Limiting the cost of infrastructure due to the deteriorating financial situation of central governments and local municipalities.
3) Industrial companies should be cautious in decisions related to spending their capital.
4) Crude oil prices may not recover enough to stave off a Middle East recession.
5) Capital is taking the place of labor in the capital market.
6) A relatively large portion of global capital is invested in financial instruments such as government bonds.
7) Steel buyers are probably reluctant to increase their inventory in 2021.
8) China′s steel demand is likely to decline due to less construction activity.
9) Reducing the intensity of steel consumption in 2021.