Asian steel demand resilient; Singapore strengthens ferrous hub
Global steel demand growth expectations have been sharply downgraded this year, putting near-term pressure on the ferrous industry. However, Asian market demand remains resilient, providing medium- to long-term support, and Singapore is poised to further consolidate its position as a ferrous trading hub.
Minister of State for Trade and Industry and National Development Alvin Tan said at the opening of Singapore International Ferrous Week that the global steel demand growth forecast for 2026 has been cut from about 1.3% at the start of the year to 0.3%, but is expected to recover to about 2.2% in 2027.
He noted that short-term industry pressures come from three factors: supply chains, costs, and trade policies. The Middle East conflict disrupts supply of raw materials such as Direct Reduced Iron (DRI) and hot briquetted iron (HBI); rising energy and freight costs add to business 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's outlook. Southeast Asia, driven by urbanization, population growth, and large-scale infrastructure projects, has long-term demand in steel-intensive sectors such as construction and manufacturing.
He also mentioned that India is becoming a major growth market, with steel demand expected to grow about 7% in 2026, with further acceleration in 2027.
Singapore strengthens ferrous trading and hedging hub status
Alvin Tan said Singapore is currently one of the world's leading ferrous trading hubs, hosting over 60 major companies across the value chain, including miners and global traders. Ferrous metals primarily refer to iron and steel, with common categories including iron ore, steel products, pig iron, scrap, and ferroalloys.
In addition, the Singapore Exchange (SGX) is the largest exchange for seaborne iron ore derivatives outside China, with trading volumes far exceeding the physical market, helping companies hedge risks in real time during market volatility.
He emphasized that Singapore has trading talent, shipping connectivity, trade finance, and a rules-based legal system. These conditions enable companies to execute contracts, manage risk, and adjust trade routes more flexibly during supply chain disruptions.
Green Metals Forum debuts
Singapore International Ferrous Week this year added the inaugural 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.
Alvin Tan said the forum will bring together global players to exchange ideas on emerging materials trends and build strategic partnerships.
He noted that technology application and low-carbon transformation will be key areas for upgrading the ferrous industry. 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.
He cited the global mining group Rio Tinto, which is currently collaborating with AI Singapore to develop applied AI tools to improve freight invoice processing and reduce transaction processing time for thousands of shipments.
On decarbonization, Alvin Tan said Singapore, as a global maritime hub and host of the Global Centre for Maritime Decarbonisation, will continue to promote green shipping corridors and low-carbon alternative fuel testing.
