Balli Steel anticipates that the global steel market will continue its recovery during 2010. Following a fall in apparent steel usage of approximately 15% in 2009, Balli Steel believes that usage could increase by up to 9% next year.

However, consumption levels are unlikely to reach their 2007 peak until 2012 and recovery is liable to be driven by the Far Eastern markets, especially China, as European markets continue struggling.

Mr Nasser Alaghband director of Balli Steel said that "We are anticipating that the steel market will continue its recovery next year but growth is expected to be moderate and driven by emerging economies, with China's influence continuing to be critical. There is a danger that consumption growth will not match the increased production capacity which has been created in recent years, which could lead to the possibility of oversupply."

Projections from the World Steel Association suggest that steel usage across Europe could grow by up to 12.4% in 2010. However, Balli Steel believes the industry still faces a number of challenges with governments cutting spending on public sector and infrastructure projects.