Though 2014 saw a 0.7 percent growth, worldsteel expects to see a 1.7 percent decrease in the 2015 global steel demand to 1,513 metric tonnes. According to chairman of worldsteel Economics Committee Hans Jürgen Kerkhoff, the steel industry has currently reached the end of a major growth cycle which had been based on the rapid economic development of China.

The country’s demand has seemed to peak in 2013, as consequent years have seen a decrease in steel demand. China is projected to have a 3.5 percent decrease in 2015, and a 2.0 percent decrease in 2016.

This year, with China’s slowdown and coupled with low investment, financial market turbulence and geopolitical conflicts in the developing regions, the industry expects to see a low-growth period that may persist until the developing regions achieve a sufficient size and strength that will result in another major growth cycle.

The association believes the Chinese economy will soon stabilise for a moderate growth in 2016, but is also concerned about the vulnerability of the emerging economies to external shocks that may affect growth rate.

Still, the steel demand in the emerging and developing countries excluding China, is expected to grow by some 1.7 percent in 2015, and 3.8 percent in 2016.

In contrast, the steel demand in developed countries which is gradually recovering will see a 2.1 percent decrease in 2015, but a positive growth of 1.8 percent in 2016.