The Short Range Outlook (SRO) June 2020 report released by the World Steel Association (worldsteel) foresees severe decline in steel demand in developing countries except China in 2020. The demand is expected to decline by 11.6% in 2020, followed by a substantial recovery of 9.2% in 2021.

The stringent nationwide lockdown measures in India resulted in nearly zero industrial operations. The construction activity, which came to a standstill, is not expected to recover soon. The automotive and machinery sectors are expected to face continued decline. On account of all the above factors, the steel demand in India is likely to decline by 18% in 2020. However, worldsteel predicts 15% rebound in 2021.

The lockdown in China has not only impacted that country, but the countries in the entire ASEAN region. The association foresees relatively strong growth in Vietnam as a result of early containment of the pandemic.

Latin American countries are unlikely to see any recovery in 2020. The region is expected to see substantial decline in steel demand in 2020 and a weak recovery in 2021. The outlook is likely to deteriorate further, as the countries in the region continue to grapple with the situation. Meantime, covid-19 crisis coupled with oil price collapse will result in severe contraction in steel demand in the CIS region.