For tire recyclers, steel price trends are critical as recovered steel from recycled tires can fluctuate in value with the steel market, affecting overall revenue and planning in tire recycling operations.

The World Steel Association has revised its 2024 forecast, projecting a 0.9 percent drop in global steel demand to 1.75 billion tons. The Association’s Short Range Outlook for 2024-2025 anticipates this decline will be followed by a moderate recovery in 2025, with demand rising by 1.2 percent to reach 1.77 billion tons, primarily outside of China.

Global steel demand has faced challenges this year due to reduced household purchasing power, tight monetary policies, and geopolitical tensions, according to Martin Theuringer, chair of the worldsteel economics committee. A slowdown in the housing construction sector, driven by high financing costs and material prices, has also contributed to the weakened demand.

The downturn is most pronounced in China, where demand is expected to fall by three percent due to real estate sector issues. Developed economies, including the U.S., Japan, Korea, and Germany, are also seeing a predicted two percent decline in demand, reflecting broader economic pressures.

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