Asia Steel Demand Resilience and Singapore Ferrous Metals Trading Hub

The global steel demand growth forecast has been significantly downgraded this year, putting short-term pressure on the ferrous metals industry. However, Asian market demand remains resilient, providing medium- to long-term support for the industry, and Singapore is poised to further consolidate its position as a ferrous metals 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 2026 global steel demand growth forecast has been cut from about 1.3% at the start of the year to 0.3% currently, but the industry expects a rebound to around 2.2% growth in 2027.

Tan noted that current short-term pressures on the industry stem from three areas: supply chains, costs, and trade policy. The Middle East conflict has disrupted supplies of raw materials such as Direct Reduced Iron (DRI) and Hot Briquetted Iron; rising energy and freight costs have further burdened companies; and changes in trade policy and tariffs continue to affect global steel trade flows.

Despite this, Asian demand remains a key pillar supporting the industry's outlook. Southeast Asia, driven by urbanization, population growth, and large-scale infrastructure development, has long-term demand in steel-intensive sectors such as construction and manufacturing.

He also mentioned that India is emerging as a major growth market, with steel demand expected to grow about 7% in 2026 and potentially accelerate further in 2027.

Singapore Consolidates Its Position as a Ferrous Metals Trading and Hedging Hub

Tan said Singapore is now one of the world's leading ferrous metals trading hubs, hosting over 60 major companies from across the value chain, including miners and global traders. Ferrous metals mainly refer to iron- and steel-containing metals, common categories include iron ore, steel, pig iron, scrap steel, 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.

Green Metals Forum Debuts: Focus on Emerging Materials and Low-Carbon Transition

Singapore International Ferrous Week this year includes the inaugural Singapore New Energy Metals and Materials Forum. The forum is co-organized by Green Esteel, a 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 views on emerging material trends and build strategic partnerships.

He also noted that technology application and low-carbon transition will be key areas for upgrading the ferrous metals 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.

For example, global mining group Rio Tinto has partnered with AI Singapore to develop AI tools that improve freight invoice processing and reduce transaction processing time for thousands of shipments.

On decarbonization, Tan said Singapore, as a global maritime hub and home to the Global Centre for Maritime Decarbonisation, will continue to promote green shipping corridors and testing of low-carbon alternative fuels.