Apparent steel consumption outlooks for 2021 remain positive at the moment, but many market observers are waiting to understand how the sentiment of the Chinese steel market will be after the ongoing New Year's holidays. In 2020 overall the global steel market was mainly supported by the strong demand of the Chinese market. This year the trend should reverse and most global regions will see important jumps in demand, while Chinese sentiment should cool down slightly.

ArcelorMittal last week issued its latest apparent steel consumption outlook for the global markets. The group expects global demand to grow 4.5-5.5% year-on-year, after a contraction of some -1% y-o-y in 2020.

"Economic activity progressively improved during 2H 2020 as lockdown measures eased. Following a prolonged period of destocking, the global steel industry is now benefiting from a favorable supply demand balance, supporting increasing utilization as demand recovers," ArcelorMittal said.

The biggest recovery for apparent steel consumption should be seen in the US, where this year it is expected to jump 10-12% y-o-y, after a contraction of some -16% y-o-y in 2020. In Europe ArcelorMittal expects the recovery to be of 7.5-9.5% y-o-y after a contraction of -10% y-o-y last year. This outlook is somewhat less positive than that issued last week by Eurofer, expecting apparent demand in the continent to rebound 13.3% y-o-y after a slump of -13% y-o-y in 2020.