Asia Supports Steel Demand Slowdown: Tan See Leng on Singapore Hub

## Global Steel Demand Growth Slows, Asia Provides Support The global steel demand growth forecast has been significantly cut this year, putting short-term pressure on the ferrous industry. However, Asian market demand remains resilient, providing medium- to long-term support, and Singapore is expected to continue consolidating its position as a ferrous trading hub. Minister of State for Trade and Industry and National Development Tan See Leng 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%, with the industry expected to recover to about 2.2% growth in 2027. ## Short-Term Pressures: Supply Chain, Costs, Trade Policy Tan pointed to three main short-term pressures: - Supply chain disruptions: The Middle East conflict disrupts raw material supplies such as Direct Reduced Iron (DRI) and hot briquetted iron. - Rising costs: Higher energy and freight costs further burden companies. - Trade flow shifts: Trade policy and tariff changes continue to impact global steel trade flows. Nevertheless, Asian demand remains a key driver of industry prospects. Southeast Asia, driven by urbanization, population growth, and large-scale infrastructure development, has long-term demand for steel-consuming sectors like construction and manufacturing. Notably, India is emerging as a major growth market, with steel demand expected to grow about 7% in 2026 and potentially accelerate further in 2027. ## Singapore Consolidates Ferrous Trading and Hedging Hub Position Tan See Leng said Singapore is a major global ferrous trading hub, hosting over 60 miners, global traders, and other key value chain players. Ferrous metals mainly refer to iron and steel products, including iron ore, steel, pig iron, scrap steel, and ferroalloys. Additionally, the Singapore Exchange is the largest seaborne iron ore derivatives exchange outside China, with trading volumes far exceeding the physical market, helping companies hedge risks in real time amid market volatility. Tan also stressed that Singapore offers trading talent, shipping connectivity, trade finance, and a rules-based legal system. These conditions enable companies to execute contracts, manage risks, and flexibly adjust trade routes when supply chains are disrupted. ## Green Metals Forum Debuts: Low-Carbon Transition and Tech Applications Singapore International Ferrous Week this year added a new Singapore New Energy Metals and Materials Forum. Co-organized by Green Esteel and Shanghai Metals Market, the forum will bring together global players to discuss emerging material trends and build strategic partnerships. Tan noted that tech applications and low-carbon transition will be key upgrade areas for the ferrous industry. Singapore is investing in computing power, talent, and industry applications under its National AI Strategy 2.0, and has established over 50 AI Centers of Excellence with industry partners. He cited Rio Tinto, which is working with AI Singapore to develop AI tools for improving freight invoice processing and reducing transaction processing time for thousands of shipments. On decarbonization, Tan said Singapore, as a global maritime hub and home to the Global Centre for Maritime Decarbonisation, will continue to promote green shipping corridors and low-carbon alternative fuel testing.