N-Share News: Chen Shenghui Says Asian Steel Demand Still Supports Market

The global steel demand growth forecast has been significantly downgraded this year, putting short-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 strengthening 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 Singapore International Ferrous Week that the 2026 global steel demand growth forecast has been revised down from about 1.3% at the beginning of the year to 0.3%, but the industry expects a recovery to around 2.2% growth in 2027.

Chen Shenghui pointed out that short-term pressures currently facing the industry mainly come 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 continue to affect global steel trade flows.

Nevertheless, Asian demand remains a key force supporting the industry's prospects. Southeast Asia, driven by urbanization, population growth, and large-scale infrastructure projects, still sees long-term demand in construction and manufacturing, sectors that consume large amounts of steel.

Chen Shenghui also mentioned that India is becoming a major growth market, with steel demand expected to grow about 7% in 2026, and the growth rate is likely to accelerate further in 2027.

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

Chen Shenghui said Singapore is currently one of the world's major ferrous metals trading hubs, hosting over 60 miners, global traders, and other major companies in the value chain. Ferrous metals mainly refer to iron- and steel-containing metals such as iron ore, steel, pig iron, scrap steel, and ferroalloys.

In addition, the Singapore Exchange is the largest exchange for seaborne iron ore derivatives outside China, with trading volumes far exceeding the physical market, helping companies hedge risks in real time during market volatility.

Green Metals Forum Makes Its Debut

For the first time this year, Singapore International Ferrous Week added the Singapore New Energy Metals and Materials Forum. The forum is co-organized by Green Esteel, a steel company focused 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.

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

He cited Rio Tinto, the global mining group, which is now working with AI Singapore to develop AI tools to improve freight invoice processing and reduce transaction processing time for thousands of shipments.

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