LONDON, April 14 (Reuters) - The World Steel Association on Tuesday cut its forecast for global crude steel demand this year, partly due to the Iran war slashing consumption in the Middle East.
The industry group cut its forecast for growth in steel demand in 2026 to 0.3% at 1.72 billion metric tons from a previous forecast in October of 1.3%.
"We expect the ongoing conflict in the Middle East to result in a sharp drop in that region’s steel demand for 2026, which was otherwise positioned for strong growth," said Alfonso Hidalgo Calcerrada, chair of the group's economics committee.
"We are now transitioning to a path of modest growth in 2026, with a more pronounced acceleration projected for 2027."
Crude steel demand is expected to gain 2.2% next year to 1.76 billion tones, the group added.
China, the world's biggest steel producer, is expected to see output fall by 1.5% this year due to its troubled property and construction sector and be flat in 2027, it added.
"As the structural realignment of the property market stabilises, we anticipate that Chinese steel demand may transition into a period of cyclical stability," a statement said.
Demand in India, the world's fastest growing major steel market, is forecast to remain strong, climbing 7.4% this year and jumping 9.2% in 2027, the group said.
Reporting by Eric Onstad; Editing by Alison Williams and Sonia Cheema
Source: Reuters