Tan See Leng: Global Steel Demand Growth Slows, Asia Provides Support
Global steel demand growth expectations are sharply 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 consolidate its position as a ferrous metals trading hub.
Mr Tan See Leng, Minister of State for Trade and Industry and National Development, said at the opening ceremony of Singapore International Ferrous Week that the global steel demand growth forecast for 2026 has been cut from about 1.3% earlier this year to 0.3% currently, but the industry expects a rebound to about 2.2% growth in 2027.
Mr Tan pointed out that the short-term pressures on the industry come mainly from three aspects: supply chain, costs, and trade policy. Conflicts in the Middle East disrupt supply of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron; rising energy and freight costs add further burden; and trade policy and tariff changes continue to affect global steel trade flows.
Nevertheless, Asian demand remains a key factor supporting industry prospects. Driven by urbanization, population growth, and large-scale infrastructure development, Southeast Asia still has long-term demand from construction and manufacturing, which are heavy steel-using sectors.
Meanwhile, India has also become a major growth market, with steel demand expected to grow about 7% in 2026, with further acceleration in 2027.
Singapore Consolidates Ferrous Metals Trading and Hedging Hub Status
Mr Tan said Singapore is currently a major global ferrous metals trading hub, hosting more than 60 key companies across the value chain, including miners and global traders. Ferrous metals mainly refer to iron and steel and other iron-containing metals; common categories include iron ore, steel, pig iron, scrap, and ferroalloys.
In addition, the Singapore Exchange (SGX) is the largest offshore exchange for seaborne iron ore derivatives, with trading volumes far exceeding the physical market, helping companies hedge risks in real time during market volatility.
Green Metals Forum Debuts
For the first time, Singapore International Ferrous Week added the Singapore New Energy Metals and Materials Forum, co-organized by Green Esteel, a steel company focused on green and low-carbon development, and Shanghai Metals Market.
Mr Tan believes the forum will gather global players to exchange views on emerging material trends and build strategic partnerships.
He noted that technology application and low-carbon transition will be key areas for upgrading the ferrous metals industry. Under the National AI Strategy 2.0, Singapore invests in computing power, talent, and industrial applications, and has established over 50 AI Centers of Excellence with industry partners.
He gave an example: global mining group Rio Tinto is currently collaborating with AI Singapore to develop AI tools for improving freight invoice processing and shortening transaction processing time for thousands of shipments.
On decarbonization, Mr Tan said that as a global maritime hub and home to the Global Maritime Decarbonisation Centre, Singapore will continue to promote green shipping corridors and low-carbon alternative fuel testing.
