Global Steel Demand Slows but Asian Market Provides Support
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 position as a ferrous metals trading hub.
Speaking at the opening ceremony of the Singapore International Ferrous Metals Week on Tuesday (June 16), Minister of State for Trade and Industry and National Development Chen Shenghui said that the 2026 global steel demand growth forecast has been revised down from about 1.3% at the beginning of the year to the current 0.3%, but the industry is expected to rebound to about 2.2% growth in 2027.
Chen Shenghui pointed out that the short-term pressures facing the industry mainly come from three aspects: supply chain, costs, and trade policies. The Middle East conflict has disrupted the supply of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron; rising energy and freight costs have further burdened enterprises; and changes in trade policies and tariffs continue to affect global steel trade flows.
Nevertheless, 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 in steel-intensive sectors such as construction and manufacturing.
Notably, India is also emerging as a major growth market, with steel demand expected to grow by about 7% in 2026, and the growth rate is expected to further accelerate in 2027.
Singapore Strengthens Its Position as Ferrous Metals Trading and Hedging Hub
Chen Shenghui noted that Singapore is currently one of the world's major ferrous metals trading hubs, hosting over 60 key companies along the value chain, including miners and global traders. Ferrous metals mainly refer to iron-containing metals such as iron and steel, common categories include 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 of China, with trading volumes far exceeding the physical market, helping enterprises hedge risks in real time during market volatility.
He emphasized that Singapore possesses trading talent, shipping connectivity, trade financing, and a rules-based legal system. These conditions allow enterprises to execute contracts, manage risks, and adjust trade routes more flexibly when supply chains are disrupted.
Green Metals Forum Debuts
This year, the Singapore International Ferrous Metals Week added the inaugural Singapore New Energy Metals and Materials Forum. The forum is co-organized by Green Esteel, a Singapore-based steel company focusing on green and low-carbon development, and Shanghai Metals Market.
Chen Shenghui said the forum will bring together global players to exchange views on emerging material trends and establish strategic partnerships.
Chen Shenghui also pointed out that technology application and low-carbon transformation will be key focus 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 Rio Tinto as an example: the global mining group is currently collaborating with AI Singapore to develop AI tools for improving freight invoice processing and reducing transaction processing time for thousands of shipments.
On decarbonization, Chen Shenghui said that Singapore, as a global maritime hub and the home of the Global Centre for Maritime Decarbonisation, will continue to promote green shipping corridors and low-carbon alternative fuel testing.