Resilient Asian Steel Demand Offers Support: Chen Shenghui on Market Outlook
Expectations for global steel demand growth were sharply cut this year, putting short-term pressure on the ferrous metals industry. Even so, demand in Asia remains resilient and will provide medium- to long-term support, while Singapore is likely to further strengthen its position as a ferrous trading hub.
Speaking at the opening of Singapore International Ferrous Week, Chen Shenghui, Senior Parliamentary Secretary for Trade and Industry and for National Development, said the forecast for global steel demand growth in 2026 has been cut from about 1.3% at the start of the year to 0.3% now, but the industry is expected to recover to around 2.2% growth in 2027.
Chen said the industry’s near-term pressures mainly come from supply chains, costs and trade policy. The Middle East conflict has disrupted supplies of raw materials such as direct reduced iron (DRI) and hot-briquetted iron. At the same time, higher energy and freight costs are adding to company burdens, while trade policy and tariff changes continue to affect global steel trade flows.
Even so, Asian demand remains the key force supporting the industry outlook. In Southeast Asia, urbanization, population growth and large-scale infrastructure development are driving long-term demand in steel-intensive sectors such as construction and manufacturing.
India is also becoming a major growth market, with steel demand expected to rise about 7% in 2026 and growth likely to accelerate further in 2027.
Singapore Reinforces Its Role as a Ferrous Trading and Safe-Haven Hub
Chen said Singapore is now one of the world’s major ferrous metals trading hubs, bringing together more than 60 miners and other major companies across the value chain, including global traders. Ferrous metals mainly refer to iron- and steel-based metals, including iron ore, steel products, pig iron, scrap and ferroalloys.
In addition, the Singapore Exchange is the largest ship-borne iron ore derivatives exchange outside China, with trading volumes far exceeding the physical market, helping companies hedge risk in real time when markets are volatile.
He stressed that Singapore offers trading talent, shipping connectivity, trade finance and a rules-based legal system. These conditions allow companies to execute contracts, manage risk and reroute trade more flexibly when supply chains are disrupted.
Green Metals Forum Debuts: Focus on New Materials and Low-Carbon Transition
This year’s Singapore International Ferrous Week also added the inaugural Singapore Energy Metals and Materials Forum. The forum is co-organized by Green Esteel, a Singapore steel company focused on green and low-carbon development, and Shanghai Metals Market.
Chen said the forum will bring global industry players together to exchange views on trends in emerging materials and build strategic partnerships.
He also said technology adoption and the low-carbon transition will be key to upgrading the ferrous metals industry. Under Singapore’s National AI Strategy 2.0, the country is investing in computing power, talent and industry applications, and has set up more than 50 AI excellence centers with industry partners.
He cited Rio Tinto as an example, saying the global mining group is working with AI Singapore to develop AI tools to improve freight invoice processing and shorten transaction handling time for thousands of shipments.
On decarbonization, Chen said Singapore, as a global maritime hub and home to the Global Centre for Maritime Decarbonization, will continue to promote green shipping corridors and testing of low-carbon alternative fuels.
