be contained without second and third peaks and if government stimulus measures are continued we could see a relatively quick recovery remeithi saidsteel demand in the developed economies is expected to decline by 171 in 2020 although the downturn is led by consumer and service sectors massive dislocations in spending labour markets and confidence are fuelling broadbased declines in steelusing sectors a spill over from substantial job losses and bankruptcies weak confidence and continued social distancing measures suggest only a partial recovery of 78 in 2021eu steel demand suffered a contraction of 56 in 2019 due to the sustained manufacturing recession the manufacturing sector which was forecast to enter a recovery phase in early 2020 was pushed back into a deeper recession as lockdown measures led to a massive fall in orders the automotive sector is expected to be the worst hit whilst the construction sector could remain relatively resilientin the us covid19 is causing a sharp manufacturing recession which is expected to reach its nadir in the second quarter the fall in oil prices has placed additional downward pressure on energy sector investment which was already distressed prior to the crisis surging unemployment is leading to reduced income and confidence impairing residential construction although nonresidential construction is faring relatively better it is expected to face a decline in 2020 and a slight recovery in 2021the developing economies are less well equipped to tackle covid19 than the developed economies with inadequate health capacity leading to stricter lockdown measures in some countries limited fiscal space to support the economy a fall in commodity prices capital flight and currency depreciation render the decline of steel demand in some developing countries as severe as that in developed economies steel demand in the developing economies excluding china is expected to fall by 116 in 2020 but will see a substantial recovery of 92 in 2021 the sro said