Asia's Steel Demand Resilience and Singapore's Ferrous Metals Trading Hub
Global steel demand growth expectations have been sharply cut this year, putting short-term pressure on the ferrous metals industry. Even so, demand in Asian markets remains resilient and will continue to support the sector over the medium to long term. Singapore is also expected to further cement its role as a ferrous metals trading hub.
Chen Shenghui, Senior Parliamentary Secretary for Trade and Industry and National Development, said at the opening ceremony of Singapore International Ferrous Metals Week that the forecast for global steel demand growth in 2026 has been lowered from about 1.3% at the start of the year to 0.3% now, but the industry is expected to rebound to around 2.2% growth in 2027.
He noted that the industry is under short-term pressure mainly from supply chains, costs, and trade policy. The conflict in the Middle East has 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 added to the burden on companies. Trade policy shifts and tariff changes continue to affect global steel trade flows.
Even so, Asian demand remains the key force supporting the industry's outlook. In Southeast Asia, urbanization, population growth, and large-scale infrastructure projects continue to drive long-term demand in steel-intensive sectors such as construction and manufacturing.
India is also emerging as a major growth market. Steel demand is expected to rise by about 7% in 2026, with growth potentially accelerating further in 2027.
Singapore Strengthens Its Role as a Ferrous Metals Trading and Safe-Haven Hub
Chen said Singapore is currently one of the world's major ferrous metals trading hubs, home to more than 60 miners, global traders, and other leading companies across the value chain. Ferrous metals mainly refer to iron-bearing metals such as iron and steel, including iron ore, steel products, pig iron, scrap steel, and ferroalloys.
In addition, the Singapore Exchange is the largest seaborne iron ore derivatives exchange outside China. Its trading volume far exceeds the physical market, helping companies hedge risk in real time when markets swing.
Green Metals Forum Debuts: New Materials and Low-Carbon Transition
This year's Singapore International Ferrous Metals Week also added the Singapore New Energy Metals and Materials Forum for the first time. The forum is co-organized by Green Esteel, a steel company focused on green and low-carbon development, and Shanghai Metals Market.
Chen said the forum will bring together industry players from around the world to discuss emerging material trends and build strategic partnerships.
He also said technology adoption and 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 compute power, talent, and industry applications, and has already set up more than 50 AI centers of excellence with industry partners.
He cited an example of Rio Tinto working with AI Singapore to develop AI tools that improve freight invoice processing and shorten transaction handling time for thousands of shipments.
On decarbonization, Chen said Singapore, as a global maritime hub and host of the Global Centre for Maritime Decarbonisation, will continue to promote green shipping corridors and tests of low-carbon alternative fuels.
