London, 6 January 2010

The outlook for the global steel industry in 2010 is now looking very positive. In fact, MEPS is forecasting a new record high output this year. There are several reasons for this bullish prediction.

First, Chinese steel production and demand is likely to continue its inexorable rise. Government stimulus packages to increase consumer demand for cars and home appliances will extend into the New Year. Perhaps, more importantly, the state is funding massive construction in the West of the country and immense infrastructure projects for rail, road and bridges in the East. This could lift steel output to above 600 million tonnes in 2010.

Second, Indian steel manufacturing will reach an “all time” high this year, after another peak outturn in the previous twelve months period. New record steel production rates are also likely to be set in several other countries, including, Turkey and several Middle Eastern countries.

Most of the steel boom will come from the developing nations of the World. However, manufacturing activity in many of the industrialised countries is starting to improve. This will add to the rise in steel production this year.

Global steel output in 2010 is forecast by MEPS at 1350million tonnes. This represents an 11.1 percent increase on the anticipated 2009 outturn, which in turn, will be 8.4percent below the figure recorded in the previous twelve months.

Ends --