According to the published report, it says that in 2023, it will not be able to completely get rid of the supply-demand shift in favor of end markets caused by decreasing consumption in 2022. We expect steelmakers to post significantly lower earnings as the global economic slowdown brings to an end the era of extraordinarily high prices supported by the post-pandemic pent-up demand.
Steel markets will normalize in 2023, with volumes largely similar to 2021 levels, excluding China.
In 2022, we expect global steel consumption to shrink by 60 million-65 million tons and capacity utilization to falling from 80% to 77%. China's targeted reduction in steel production will cover 20 million-30 million tons of this, and the rest will come from the destruction of demand outside China. Fitch expects gradual growth in steel consumption in markets such as India, southeast Asia and the USA in 2023, exceeding the Chinese managed decrease of 25 million-35 million tons.
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