Singapore Ferrous Trading Hub Supports Steel Market: Demand Slowdown and Green Transition
Global steel demand growth expectations have been sharply downgraded this year, putting short-term pressure on the ferrous industry. However, Asian market demand remains resilient, providing medium- to long-term support, and Singapore is expected to continue strengthening its role as a ferrous trading hub.
Minister of State for Trade and Industry and for Culture, Community and Youth, Alvin Tan, said at the opening ceremony of Singapore International Ferrous Week that the 2026 global steel demand growth forecast has been cut from around 1.3% at the start of the year to 0.3%, but the industry expects a rebound to about 2.2% in 2027.
Tan noted that short-term pressures on the industry come 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. Meanwhile, rising energy and freight costs are adding to business burdens, and trade policies and tariff changes continue to affect global steel trade flows.
Despite this, Asian demand remains a key pillar supporting the industry's prospects. Southeast Asia, driven by urbanization, population growth, and large-scale infrastructure projects, still has long-term demand in steel-intensive sectors such as construction and manufacturing.
India is also emerging as a major growth market, with steel demand expected to grow about 7% in 2026, and the pace could accelerate further in 2027.
Singapore Strengthens Ferrous Trading and Hedging Hub Status
Tan said Singapore is currently one of the world's leading ferrous trading hubs, hosting over 60 miners, global traders, and other key players in the value chain. Ferrous metals mainly refer to iron and steel-based metals, with common categories including iron ore, steel, pig iron, scrap steel, and ferroalloys.
He noted that the Singapore Exchange is the largest exchange for seaborne iron ore derivatives outside China, with trading volume far exceeding the physical market, helping companies hedge risks in real time during market volatility.
He emphasized that Singapore has trading talent, shipping connectivity, trade finance, and a rules-based legal system. These conditions enable companies to execute contracts, manage risks, and flexibly adjust trade routes when supply chains are disrupted.
Green Metals Forum Debuts
Singapore International Ferrous Week this year debuted the Singapore New Energy Metals and Materials Forum, 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 players to exchange views on emerging material trends and build strategic partnerships.
He pointed out that technology adoption and low-carbon transformation will be key areas for upgrading the ferrous industry. Under its National AI Strategy 2.0, Singapore is investing in computing power, talent, and industrial applications, and has set up over 50 AI Centers of Excellence with industry partners.
For example, global mining group Rio Tinto is working with AI Singapore to develop AI tools to 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 low-carbon alternative fuel testing.
