Mr Peter Marcus managing partner at World Steel Dynamics said that global steel demand will fall by 5% in 2009 as the financial crisis tips economies into recession, curbing purchases of the metal. He added that "New orders for steel in all regions of the world have had probably an unprecedented decline. We have gone from a chill to the deep freeze. Buyers have been on strike since July 2008."

Mr Marcus said that the global economic downturn is prompting consumers to delay purchases of homes and cars, driving down steel prices and forcing mills including ArcelorMittal to consider production cuts. Prices of iron ore may fall as much as 30% in the coming year and coking coal may drop as much as 50%.

He added that “Global apparent steel demand will be down 3% in 2008 and is expected to fall 5% in 2009. The steel industry is facing at least two years of significant oversupply."

(source:steelguru)