Chen Shenghui: Global Steel Demand Growth Slows, Asia Still Provides Support
The global steel demand growth forecast has been sharply revised down this year, putting short-term pressure on the ferrous metals industry. However, Asian market demand remains resilient, providing medium- to long-term support, 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 Chen Shenghui spoke at the opening ceremony of the Singapore International Ferrous Metals Week, stating that the 2026 global steel demand growth forecast has been revised from about 1.3% at the start of the year to the current 0.3%, with the industry expected to recover to about 2.2% growth in 2027.
Chen Shenghui pointed out that the current short-term pressures facing the industry come mainly from three aspects: supply chains, costs, and trade policies. Conflicts in the Middle East have disrupted the supply of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron. 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. 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 mentioned that India is becoming a major growth market, with steel demand expected to grow by about 7% in 2026, and the growth rate could further increase in 2027.
Singapore Solidifies Its Position as a Ferrous Metals Trading and Hedging Hub
Chen Shenghui stated that Singapore is currently one of the world's major ferrous metals trading hubs, hosting over 60 miners, global traders, and other major companies along the value chain. Ferrous metals mainly refer to iron, steel, and other iron-containing metals, common categories including iron ore, steel, pig iron, scrap steel, and ferroalloys.
Additionally, the Singapore Exchange is the largest exchange for seaborne iron ore derivatives outside of China, with trading volumes far exceeding the physical market, helping enterprises hedge risks in real-time during market fluctuations.
Green Metals Forum Debuts: Low-Carbon Transition and Technology Application
For the first time this year, the Singapore International Ferrous Metals Week added the Singapore New Energy Metals and Materials Forum. This forum is co-organized by Green Esteel, a steel company focusing on green and low-carbon development, and Shanghai Metals Market.
Chen Shenghui said the forum will bring together global industry players to exchange views on emerging material trends and establish strategic partnerships.
He noted that technology application and low-carbon transition will be key focuses for the upgrade of the ferrous metals industry. Singapore is investing in computing power, talent, and industrial applications under its National AI Strategy 2.0, and has established over 50 AI Centers of Excellence with industry partners.
He cited Rio Tinto as an example, which has partnered with AI Singapore to develop AI tools for improving freight invoice processing and reducing transaction processing time for thousands of shipments.
On carbon reduction, Chen Shenghui said that Singapore, as a global maritime hub and the Global Maritime Decarbonization Centre, will continue to promote green shipping corridors and testing of low-carbon alternative fuels.
