Asia Steel Demand Remains Resilient, Singapore Strengthens Ferrous Hub
Global steel demand growth forecasts have been sharply cut this year, putting short-term pressure on the ferrous sector. However, Asian market demand remains resilient, providing medium- to long-term support for the industry, and Singapore is well-positioned to further consolidate its role as a ferrous trading hub.
Speaking at the opening ceremony of Singapore International Ferrous Week on Tuesday (June 16), Minister of State for Trade and Industry and National Development Alvin Tan said that the 2026 global steel demand growth forecast has been revised down from about 1.3% at the start of the year to 0.3% currently, but the industry expects a recovery to growth of about 2.2% in 2027.
Tan noted that current short-term pressures on the industry stem mainly from three areas: supply chains, costs, and trade policy. Conflicts in the Middle East have disrupted supplies of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron. At the same time, rising energy and freight costs have further burdened enterprises, and changes in trade policies and tariffs continue to affect global steel trade flows.
Despite this, Asian demand remains a 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.
Notably, India is also emerging as a major growth market, with steel demand expected to grow by about 7% in 2026, with further acceleration possible in 2027.
Singapore Solidifies Ferrous Trading and Hedging Hub
Tan highlighted that Singapore is now one of the world's major ferrous trading hubs, hosting over 60 miners, global traders, and other key players along the value chain. Ferrous metals primarily 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 China, with trading volumes far exceeding the physical market, helping firms hedge risks in real time during market volatility.
He emphasized that Singapore possesses 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
This year's Singapore International Ferrous Week includes, for the first time, the Singapore New Energy Metals and Materials Forum. The forum is co-organized by Green Esteel, a Singapore-based steel company focused on green and low-carbon development, and Shanghai Metals Market.
Tan said the forum will bring together global industry players to exchange ideas on emerging materials and build strategic partnerships.
Tan also noted that technology adoption and low-carbon transformation will be key focus areas for upgrading the ferrous sector. Under its National AI Strategy 2.0, Singapore is investing in computing power, talent, and industrial applications, and has set up over 50 AI Centers of Excellence with industry partners.
As an example, global mining group Rio Tinto is currently collaborating with AI Singapore to develop AI tools to improve freight invoice processing and reduce transaction processing time 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.
