Alvin Tan: Global steel demand growth slows, Asia still provides support
Global steel demand growth expectations have been sharply downgraded this year, putting short-term pressure on the ferrous metals industry. However, demand in the Asian market remains resilient and will provide medium-to-long-term support, while Singapore is expected to consolidate its position as a ferrous metals trading hub.
Speaking at the opening of Singapore International Ferrous Week, Minister of State for Trade and Industry and National Development Alvin Tan said global steel demand growth for 2026 has been cut from about 1.3% at the start of the year to the current 0.3%, but is forecast to recover to about 2.2% in 2027.
He noted that the short-term pressures facing the industry come mainly from three aspects: supply chains, costs, and trade policies. Conflicts in the Middle East have disrupted supplies of raw materials such as Direct Reduced Iron (DRI) and hot briquetted iron. Meanwhile, rising energy and freight costs are adding to corporate burdens, and changes in trade policies and tariffs continue to affect global steel trade flows.
Nevertheless, Asian demand remains a key support for the industry outlook. Southeast Asia, driven by urbanization, population growth and large-scale infrastructure projects, retains long-term demand from steel-intensive sectors such as construction and manufacturing.
Tan mentioned that India is also emerging as a major growth market, with steel demand expected to grow about 7% in 2026 and accelerate further in 2027.
Singapore consolidates its role as a ferrous metals trading and hedging hub
Tan said Singapore is currently one of the world's leading ferrous metals trading hubs, hosting over 60 miners, global traders, and other key players in the value chain. Ferrous metals mainly refer to iron- and steel-containing metals such as iron ore, steel, pig iron, scrap steel, and ferroalloys.
In addition, the Singapore Exchange (SGX) is the largest seaborne iron ore derivatives exchange outside of China, with trading volumes far exceeding the physical market, allowing companies to hedge risks in real time amid market volatility.
First Green Metals Forum: Focus on new energy metals and low-carbon transition
This year's Singapore International Ferrous Week introduced the inaugural Singapore New Energy Metals and Materials Forum, co-organized by green and low-carbon steel company Green Esteel and Shanghai Metals Market.
Tan said the forum will bring together global industry players to discuss emerging material trends and forge strategic partnerships.
He also emphasized that technology adoption and low-carbon transition will be key priorities for the ferrous metals industry upgrade. Under its National AI Strategy 2.0, Singapore is investing in computing power, talent, and industrial applications, and has established over 50 AI Centers of Excellence with industry partners.
For example, Rio Tinto is currently working with AI Singapore to develop AI tools to improve freight invoice processing and shorten transaction processing times for thousands of shipments.
On decarbonization, Tan said that as a global maritime hub and home to the Global Centre for Maritime Decarbonisation, Singapore will continue to promote green shipping corridors and low-carbon alternative fuel testing.
