Chen Shenghui: Global Steel Demand Growth Slows, Asia Provides Support
Global steel demand growth expectations have been significantly downgraded this year, putting short-term pressure on the ferrous sector. However, Asian market demand remains resilient, providing medium-to-long-term support. Singapore is also expected to further strengthen its position as a ferrous trading hub.
Minister of State for Trade and Industry and National Development Chen Shenghui said at the opening of Singapore International Ferrous Week that the 2026 global steel demand growth forecast has been cut from about 1.3% at the start of the year to 0.3% currently, but the industry is expected to rebound to about 2.2% growth in 2027.
Chen noted that short-term pressures come mainly from supply chains, costs, and trade policies. The Middle East conflict has disrupted supplies of raw materials like Direct Reduced Iron (DRI) and hot briquetted iron (HBI). Meanwhile, rising energy and freight costs add to corporate burdens; trade policy and tariff changes continue to affect global steel trade flows.
Nonetheless, Asian demand remains a key force supporting the industry outlook. Southeast Asia, driven by urbanization, population growth, and large-scale infrastructure construction, still has long-term demand for steel-intensive sectors like construction and manufacturing.
Notably, India is also becoming a major growth market, with steel demand expected to grow about 7% in 2026 and further acceleration in 2027.
Singapore Strengthens Ferrous Trading and Hedging Hub Status
Chen pointed out that Singapore is currently one of the world's major ferrous trading hubs, hosting over 60 miners, global traders, and other key companies along the value chain. Ferrous metals mainly refer to iron and steel, including common categories like iron ore, steel, pig iron, scrap steel, and ferroalloys.
Moreover, the Singapore Exchange (SGX) 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 amid market volatility.
Green Metals Forum Debuts
This year, Singapore International Ferrous Week debuted the Singapore New Energy Metals and Materials Forum, co-organized by Green Esteel, a 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 build strategic partnerships.
He also noted that technology application and low-carbon transformation will be key focuses for upgrading the ferrous sector. Under its National AI Strategy 2.0, Singapore is investing in computing power, talent, and industrial applications, and has set up over 50 AI Centers of Excellence with industry partners.
He cited Rio Tinto, which is working with AI Singapore to develop AI tools to improve freight invoice processing and shorten transaction times for thousands of shipments.
On decarbonization, Chen said Singapore, as a global maritime hub and home to the Global Centre for Maritime Decarbonisation, will continue to promote green shipping corridors and low-carbon alternative fuel testing.
