Global Steel Demand Growth Slows: Asia Still Provides Support, Singapore Solidifies Ferrous Metals Trading Hub Status

Global steel demand growth expectations have been sharply downgraded this year, putting near-term pressure on the ferrous metals industry. However, Asian market demand remains resilient, providing medium- to long-term support for the industry, and Singapore is expected to continue solidifying its position as a ferrous metals trading hub.

Minister of State for Trade and Industry and National Development Alvin Tan 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%, with the industry expected to recover to about 2.2% growth in 2027.

Tan pointed out that the current short-term pressures facing the industry come mainly from three aspects: supply chains, costs and trade policies. The Middle East conflict has disrupted supplies of direct reduced iron (DRI) and hot briquetted iron (HBI); rising energy and freight costs have further burdened companies; 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. Southeast Asia, driven by urbanization, population growth and large-scale infrastructure construction, still has long-term demand in steel-intensive sectors such as construction and manufacturing.

He also noted that India is emerging as a major growth market, with steel demand expected to grow about 7% in 2026, and the pace likely to accelerate further in 2027.

Singapore Solidifies Ferrous Metals Trading and Safe-Haven Hub Status

Tan said Singapore is currently one of the world's major ferrous metals trading hubs, hosting more than 60 miners and global traders across the value chain. Ferrous metals mainly refer to iron and steel, common categories including iron ore, steel, pig iron, scrap 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 offers trading talent, shipping connectivity, trade finance and a rules-based legal system. These conditions allow companies to execute contracts, manage risks, and flexibly adjust trade routes when supply chains are disrupted.

Green Metals Forum Debuts: Focus on Emerging Materials and Low-Carbon Transition

Singapore International Ferrous Week this year added the inaugural Singapore New Energy Metals & 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.

Tan said the forum will bring together global players to exchange views on emerging material trends and build strategic partnerships.

He also pointed out that technology application and low-carbon transition will be key areas for upgrading the ferrous metals industry. Under its National AI Strategy 2.0, Singapore is investing in computing power, talent and industrial applications, and has established more than 50 AI Centers of Excellence with industry partners.

For example, global mining group Rio Tinto is currently partnering with AI Singapore to develop AI tools for improving freight invoice processing and reducing transaction processing time for thousands of cargo shipments.

On decarbonization, Tan said that as a global maritime hub and home to the Global Centre for Maritime Decarbonisation, Singapore will continue to promote green shipping corridors and low-carbon alternative fuel trials.