Recovery and NML's future???Breaking News from The Globe and Mail
Steel makers say global demand is recovering
The Associated Press
Monday, October 12, 2009
Brussels — World steel makerssaid Monday that “exceptionally strong growth” in Chinese demand and abetter-than-expected global economic recovery would keep steelconsumption from falling as sharply as previously expected.
The World Steel Association said steel use was likely to fall by 8.6per cent to 1,104 million metric tons in 2009 – less than its Aprilforecast for a 14.1-per-cent plunge.
Global steel demand would return to “moderate growth” and near 2008output levels in 2010 – growing by 9.2 per cent to 1,206 million metrictons, said the association, which represents 180 steel producersturning out 85 per cent of world steel output.
“As before the financial crisis, the emerging economies, especiallyChina, will be the critical factor in driving world steel demand in thenear future,” it said.
It said this recovery was uncertain and could be damaged if governmentswithdraw stimulus programs boosting public spending before privatecompanies are able to support growth.
“This uncertainty particularly exists for the Chinese economy in 2010,whose fast recovery in 2009 was largely enabled by such stronggovernment stimulus policies,” it said.
Demand from China is set to grow 18.8 per cent this year and 5 per centnext year, it estimated. Other emerging economies – such as Brazil,Russia and India – will slow by 17 per cent in 2009 and grow by 12 percent in 2010.
The slowdown is deeper in developed nations – including the UnitedStates, Europe and Japan – which are jointly set to contract 34 percent this year but are expected to return to growth, of 15 per cent, in2010.
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