Steel suppliersthe world over are likely to face significant demand for construction steel inthe years to come, as activity returns to markets including emerging economies.
That is theprediction made in a new Companies and Markets report, which focuses on iron ore- a commodity with a 98% direct link to steel production.
“Theiron ore industry has been witnessing a flurry of activity in the last fewyears, primarily due to unprecedented growth in demand for iron ore incountries such as China and India,” the study observes.
It adds that”rampant economic activity” is likely in emerging markets in the nearterm, accompanied by a more general recovery in construction projectsworldwide.
Together,this means steel suppliers will be facing substantial demand, leading theanalyst to predict iron ore consumption of 1.7 billion tonnes in 2015 andbeyond.
With thislevel of demand likely to impact supply – which has been relatively strong inrecent years due to reduced construction activity in the downturn – it may be wiseto bring projects forwards where possible, in order to beat the impending’rampant’ rush.