Asian demand supports global steel market; Singapore strengthens trading hub status
Global steel demand growth forecasts have been sharply cut this year, putting the ferrous metals sector under near-term pressure. However, Asian market demand remains resilient, providing medium- to long-term support for the industry, and Singapore is expected to continue strengthening its position as a ferrous metals 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 Tan Shenghui said the 2026 global steel demand growth forecast has been revised down from about 1.3% at the start of the year to the current 0.3%, but the industry is expected to recover to about 2.2% growth in 2027.
Tan noted that the current short-term pressures facing the industry mainly come from three aspects: supply chains, costs, and trade policies. The Middle East conflict has disrupted supplies of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron. Meanwhile, rising energy and freight costs further burden enterprises; changes in trade policies and tariffs continue to affect global steel trade flows.
Nevertheless, Asian demand remains a key force supporting the industry outlook. Driven by urbanization, population growth, and large-scale infrastructure construction, areas such as construction and manufacturing that heavily use steel still have long-term demand in Southeast Asia.
Notably, India is also emerging as a major growth market, with steel demand expected to grow by about 7% in 2026, and the growth rate may further increase in 2027.
Singapore strengthens its status as a ferrous metals trading and hedging hub
Tan pointed out that Singapore is currently one of the world's major ferrous metals trading hubs, hosting over 60 major companies across the value chain, including miners and global traders. Ferrous metals mainly refer to iron and steel-containing metals such as iron ore, steel products, pig iron, scrap steel, and ferroalloys.
In addition, the Singapore Exchange 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 fluctuations.
He emphasized that Singapore possesses trading talent, shipping connectivity, trade financing, and a rules-based legal system. These conditions enable companies to execute contracts, manage risks, and adjust trade routes more flexibly when supply chains are disrupted.
Green Metals Forum debuts
This year, Singapore International Ferrous Week added the Singapore New Energy Metals and Materials Forum for the first time. The forum is co-organized by Green Esteel, a Singapore-based steel enterprise focusing on green and low-carbon development, and Shanghai Metals Market.
Tan said the forum will bring together global industry players to exchange views on emerging material trends and establish strategic partnerships.
Tan also noted that technology application and low-carbon transformation will be key focus areas for upgrading the ferrous metals industry. Singapore is investing in computing power, talent, and industrial applications under its National AI Strategy 2.0, and has established more than 50 AI Centers of Excellence with industry partners.
He cited the example of global mining group Rio Tinto, which is currently collaborating with AI Singapore to develop applied AI tools for improving freight invoice processing and reducing transaction processing time for thousands of shipments.
On carbon reduction, Tan said that as a global maritime hub and the home of the Global Maritime Decarbonisation Centre, Singapore will continue to promote green shipping corridors and low-carbon alternative fuel testing.
