Stemcor Holdings Limited, the world's largest independent steel trader, said that global steel consumption in 2011 is expected to be higher than 2010 levels, reflecting a normal recovery from a deep recession.

Mr Ralph Oppenheimer executive chairman of Stemcor said that "Demand is slowly growing. Urbanization in the developing world is an ongoing process and it requires an enormous amount of steel, resulting in many orders in the capital goods industries in the developed world. Just as 2011 has been stronger than 2010, we expect to see further growth in 2012, 2013."

Mr Oppenheimer said that "There was a brief interlude of say 300 years when the West took over, but China and India are now resuming their historical position in the world economy."

Mr Oppenheimer said that "People who are really cashing in on the steel boom are the raw material producers, who are very well consolidated, who consequently are earning enormous amounts of money and the steelmakers, converters are stuck in the middle and the return on capital is very much lower. I do see it continuing because the demand for raw materials is rising and the supply for raw materials is very highly consolidated."

According to the World Steel Association, global steel consumption will rise 5.9% in 2011 and 6% in 2012. It said that Chinese steel use will climb 5% in 2011 and 2012, while India's demand will increase 13.3% in 2011 and 14.3% in 201.

(Sourced from www.gulfnews.com)