The OECD’s Steel Committee has released a report suggesting the industry will be significantly challenged in the medium term.

After a meeting in Paris on the 6-7 of December, the committee came to some conclusions about the state of the steel industry. The most notable concern was that statistics projected world demand for steel to decrease in the coming decade.

A combination of factors are expected to cause a weak outlook – with the growth in the major markets being chief among them.

Demand for steel has contracted in major markets like Europe and North America – but more tellingly, Asia’s growth in steel demand has dropped from 11 per cent in the third quarter of 2011, to just 3 per cent this year.

It was also projected that the world’s steel demand would be 2.3 billion tonnes in 2025, which would mark a slowdown compared to the previous decade. The report cited China’s move towards a more service-oriented economy as a contributing factor.

Another industry challenge will be the effect climate change policies have. Carbon emissions are an inevitable byproduct of the steel-making process, and unless significant emission reductions can be made, some countries’ policies could hurt steel-makers.