Global Steel Demand Growth Slows, Asian Demand Still Supports Industry
Global steel demand growth forecast has been sharply revised down this year, putting short-term pressure on the ferrous metals industry. However, Asian market demand remains resilient, providing medium-to-long-term support, and Singapore is expected to further consolidate its role as a ferrous metals trading hub.
Alvin Tan, Minister of State for Trade and Industry and National Development, said at the opening ceremony of the Singapore International Ferrous Metals Week on Tuesday June 16 that the global steel demand growth forecast for 2026 has been revised down from about 1.3% at the beginning of the year to 0.3%, but the industry is expected to rebound to about 2.2% growth in 2027.
Tan noted that short-term pressures currently facing the industry mainly come from three aspects: supply chains, costs, and trade policies. Conflicts in the Middle East have disrupted supplies of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron (HBI); at the same time, rising energy and freight costs have further burdened enterprises; changes in trade policies and tariffs continue to affect global steel trade flows.
Despite this, Asian demand remains a key force supporting the industry outlook. Driven by urbanization, population growth, and large-scale infrastructure construction, Southeast Asia still has long-term demand for steel-intensive sectors such as construction and manufacturing.
Notably, India is also emerging as a major growth market, with steel demand expected to grow about 7% in 2026 and potentially accelerate further in 2027.
Singapore Consolidates Position as Ferrous Metals Trading and Hedging Hub
Tan pointed out that Singapore is currently one of the world's major ferrous metals trading hubs, hosting over 60 key players in the value chain, including miners and global traders. Ferrous metals mainly refer to iron-containing metals such as iron and steel, common categories including iron ore, steel products, pig iron, scrap steel, and ferroalloys.
In addition, the Singapore Exchange (SGX) is the largest exchange for seaborne iron ore derivatives outside China, with trading volumes far exceeding the physical market, helping enterprises hedge risks in real time during market fluctuations.
He emphasized that Singapore has trading talent, shipping connectivity, trade financing, and a rules-based legal system. These conditions allow enterprises to execute contracts, manage risks, and more flexibly adjust trade routes when supply chains are disrupted.
Green Metals Forum Makes Debut
This year, the Singapore International Ferrous Metals Week added the Singapore New Energy Metals and Materials Forum for the first time. The forum is co-organized by Green Esteel, a Singapore steel company focusing on green and low-carbon development, and Shanghai Metals Market.
Tan said the forum will bring together global players to exchange ideas on emerging materials trends and build strategic partnerships.
Tan also noted that technology application and low-carbon transition will be key areas for upgrading the ferrous metals industry. Under Singapore's National AI Strategy 2.0, the country is investing in computing power, talent, and industrial applications, and has established over 50 AI Centers of Excellence with industry partners.
He cited as an example global mining group Rio Tinto, which is currently collaborating with AI Singapore to develop applied AI tools to improve freight invoice processing and reduce transaction processing time for thousands of shipments.
On carbon reduction, Tan said that as a global maritime hub and the location of the Global Centre for Maritime Decarbonisation, Singapore will continue to promote green shipping corridors and low-carbon alternative fuel testing.
