The association expects India to be the main driver of demand growth as Chinese demand continues to decline.
After two years of decline and severe post-pandemic market volatility, there are signs of global steel demand "settling in a growth trajectory in 2024 and 2025", the industry group's statement said.
Global demand in 2025 is expected to rise by 1.2% to 1.815 billion tons, it said.
Apparent steel use in China, the world's top producer and consumer of the metal, fell by 3.3% in 2023 and is expected to be steady in 2024 as a decline in real estate investment is offset by growth from infrastructure investment and manufacturing sectors, the association said.
It expects China's steel demand decline by 1% in 2025, remaining significantly lower than its 2020 peak.
India, however, has emerged as the strongest driver of steel demand growth since 2021.
The association expects Indian demand to grow by 8% over 2024 and 2025.
Demand in Europe, which has been challenged by high inflation and tighter monetary policy, is expected to show very modest growth this year before a 5.3% projected gain in 2025.
Meanwhile, strong investment activity will bring U.S. demand back to growth this year after a drop caused by a housing market slowdown in 2023, the association said.
