Singapore Ferrous Metals Week: Global Steel Demand Slows, Asian Demand Still Provides Support

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

Minister of State for Trade and Industry and National Development, Chen Shenghui, said at the opening ceremony of the Singapore International Ferrous Metals Week on Tuesday (June 16) that the 2026 global steel demand growth forecast has been revised down from about 1.3% at the start of the year to 0.3% now, but the industry expects a recovery to about 2.2% growth in 2027.

Chen pointed out that current short-term pressure on the industry comes mainly from three aspects: supply chains, costs, and trade policies. The Middle East conflict disrupts the supply of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron (HBI). Meanwhile, rising energy and freight costs further burden enterprises; changes in trade policies and tariffs continue to affect global steel trade flows.

Nevertheless, Asian demand remains a key force supporting the industry outlook. Driven by urbanization, population growth, and large-scale infrastructure construction, Southeast Asia still has long-term demand in steel-intensive fields such as construction and manufacturing.

Notably, India is also emerging as a major growth market, with steel demand expected to grow about 7% in 2026, and the growth rate may further accelerate in 2027.

Singapore Consolidates Its Position as a Ferrous Metals Trading and Hedging Hub

Chen noted that Singapore is currently one of the world's major ferrous metals trading hubs, hosting over 60 miners, global traders, and other key companies along the value chain. Ferrous metals mainly refer to iron-containing metals such as iron and steel, common categories include iron ore, steel products, 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 amid market fluctuations.

He emphasized that Singapore possesses trading talent, shipping connectivity, trade finance, and a rules-based legal system. These conditions allow companies to execute contracts, manage risks, and adjust trade routes more flexibly when supply chains are disrupted.

Green Metals Forum Debuts

The Singapore International Ferrous Metals Week this year added the Singapore New Energy Metals and Materials Forum for the first time. The forum is co-organized by Green Esteel, a Singapore-based steel company focusing on green and low-carbon development, and Shanghai Metals Market.

Chen said the forum will bring together global industry players to exchange views on emerging material trends and establish strategic partnerships.

Chen also noted that technology application and low-carbon transformation will be key focuses for upgrading the ferrous metals industry. Under the National AI Strategy 2.0, Singapore is investing in computing power, talent, and industrial applications, and has established over 50 AI Centres of Excellence with industry partners.

He cited the example of global mining group Rio Tinto, which is currently collaborating with AI Singapore to develop applied AI tools to improve freight invoice processing and shorten transaction processing times for thousands of shipments.

On decarbonization, Chen said that as a global maritime hub and the home of the Global Maritime Decarbonization Centre, Singapore will continue to promote green shipping corridors and low-carbon alternative fuel testing.