Global Steel Demand Slows; Asian Demand and Singapore Hub Role Support Industry
The global steel demand growth forecast has been sharply downgraded 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 trading hub.
Global Steel Demand Forecast Lowered, Short-Term Pressure Intensifies
Minister of State for Trade and Industry and National Development Chen Shenghui said at the opening of Singapore International Ferrous Week on Tuesday (June 16) that the 2026 global steel demand growth forecast has been cut from about 1.3% at the start of the year to 0.3%, but the industry expects a recovery to about 2.2% growth in 2027.
Chen noted that the short-term pressures facing the industry come mainly from supply chains, costs and trade policy. The Middle East conflict has disrupted supplies of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron. Meanwhile, rising energy and freight costs have further burdened businesses; trade policy and tariff changes continue to affect global steel trade flows.
Asian Demand Remains Resilient, India Growth Expected
Nevertheless, Asian demand remains a key pillar supporting the industry outlook. Southeast Asia, driven by urbanization, population growth and large-scale infrastructure development, still has long-term demand in steel-intensive sectors such as construction and manufacturing.
Notably, India is becoming a major growth market, with steel demand expected to grow about 7% in 2026 and possibly accelerate further in 2027.
Singapore Consolidates Ferrous Trading and Safe-Haven Hub Status
Chen pointed out that Singapore is currently one of the world's leading ferrous trading hubs, hosting more than 60 miners, global traders and other key companies along the value chain. Ferrous metals mainly refer to iron, steel and other iron-containing metals; common categories include iron ore, steel, pig iron, scrap steel and ferroalloys.
In addition, the Singapore Exchange is the largest seaborne iron ore derivatives exchange outside China, with trading volumes far exceeding the physical market, helping companies hedge risks in real time during market volatility.
He emphasized that Singapore has trading talent, shipping connectivity, trade finance and a rules-based legal system. These conditions enable companies to execute contracts, manage risks and adjust trade routes more flexibly when supply chains are disrupted.
Green Metals Forum Debuts, Low-Carbon Transition Accelerates
This year, Singapore International Ferrous Week added a new Singapore New Energy Metals and Materials Forum for the first time. The forum is co-organized by Green Esteel, a Singapore-based steel company focused on green and low-carbon development, and Shanghai Metals Market.
Chen said the forum will bring together global players to exchange views on emerging materials trends and establish strategic partnerships.
Chen also noted that technology adoption and low-carbon transition will be key priorities for upgrading the ferrous industry. Singapore is investing in computing power, talent and industrial applications under its National AI Strategy 2.0, and has established over 50 AI Centers of Excellence with industry partners.
He cited as an example global mining giant Rio Tinto, which is collaborating with AI Singapore to develop AI tools to improve freight invoice processing and shorten transaction processing times for thousands of shipments.
On decarbonization, Chen said Singapore, as a global maritime hub and location of the Global Centre for Maritime Decarbonisation, will continue to promote green shipping corridors and low-carbon alternative fuel testing.
