Alvin Tan: Global Steel Demand Growth Slows, Asia Still Provides Support
Global steel demand growth expectations have been significantly downgraded this year, putting short-term pressure on the ferrous metals sector. However, demand in the Asian market remains resilient, providing medium- to long-term support for the industry. Singapore is also expected to continue consolidating its status as a ferrous metals trading hub.
Speaking at the opening ceremony of Singapore International Ferrous Metals Week, Minister of State for Trade and Industry & National Development Alvin Tan said that the forecast for global steel demand growth in 2026 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 recover to around 2.2% growth in 2027.
Tan noted that the short-term pressures currently facing the industry come mainly from three aspects: supply chains, 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. Meanwhile, rising energy and freight costs have further burdened enterprises. Changes in trade policies and tariffs also continue to affect global steel trade flows.
Despite this, Asian demand remains a key factor supporting the industry outlook. Driven by urbanization, population growth, and large-scale infrastructure construction in Southeast Asia, sectors that consume large amounts of steel, such as construction and manufacturing, still have long-term demand.
Tan also mentioned that India is becoming a major growth market. Steel demand is expected to grow by about 7% in 2026, with further acceleration expected in 2027.
Singapore Consolidates Position as Ferrous Metals Trading and Safe-Haven Hub
Tan pointed out that Singapore is currently one of the world's major ferrous metals trading hubs, hosting more than 60 miners, global traders, and other key players in the value chain. Ferrous metals mainly refer to iron and 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.
Green Metals Forum Debuts
This year, 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.
Tan said the forum will bring together global industry players to exchange views on emerging materials trends and establish strategic partnerships.
He also noted that technology application and low-carbon transition will be key priorities for the upgrade of the ferrous metals industry. Under its National AI Strategy 2.0, Singapore is investing in computing power, talent, and industrial applications. It has also set up over 50 AI Centers of Excellence with industry partners.
In terms of decarbonization, Tan said that as a global maritime hub and the home of the Global Centre for Maritime Decarbonisation, Singapore will continue to promote green shipping corridors and low-carbon alternative fuel testing.
