The World Steel Association (WSA) lowered its forecast for global crude steel demand growth in 2026 to 0.3%, totaling 1.72 billion metric tons, down from a previous estimate of 1.3% made last October. The revision was partly attributed to the conflict in the Middle East, which is expected to significantly reduce steel consumption in the area.

Alfonso Hidalgo Calcerrada, chair of the group’s economics committee, said the ongoing conflict would sharply weaken regional demand that had previously been set for strong growth. He added that the industry is now shifting toward modest growth in 2026, with stronger acceleration anticipated in 2027.

Global crude steel demand is projected to rise 2.2% in 2027 to 1.76 billion tons. China’s output is expected to fall 1.5% this year due to weakness in its property sector, while India’s demand is forecast to remain strong, climbing by 7.4% this year and jumping 9.2% in 2027