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| Global steel demand |
The global steel demand outlook shows flat growth for 2026. According to the World Steel Association, global demand will reach 1.72 billion metric tons. However, China’s structural real estate contraction continues to suppress regional consumption. In contrast, emerging Asian economies offset these declines with strong infrastructure investments.
Indian Expansion and US Infrastructure Power Global Growth
India remains the fastest-growing major steel market worldwide. As a result, domestic scrap recycling and finished steel consumption continue to surge. Meanwhile, the United States reports steady 2 percent growth driven by data centers. European manufacturing, however, faces lingering energy market disruptions and geopolitical tensions.
ASEAN Markets Surge Led by Vietnam Construction Boom
Vietnam leads the ASEAN region with record residential construction volume. Therefore, apparent steel consumption in Vietnam will reach 30 million metric tons. Meanwhile, South Korea demonstrates a mild recovery following steep previous contractions. Global steelmakers must navigate these shifting regional dynamics to optimize raw material procurement.
ScrapInsight Commentary
The global steel demand outlook highlights a clear decoupling between contracting Chinese real estate consumption and aggressive South Asian industrial expansion. Recycled steel exporters should immediately reallocate trade flows toward India and Vietnam to capture growing scrap import demand. Furthermore, volatile energy supply lines in the Middle East require steelmakers to maintain higher inventory cushions through late 2026.
