London –(Kitco News) --Global steel consumption is forecasted to reach 1477 million tonnes by 2014 due to positive projections in steel demand over the next few years said MEPS, the U.K.-based steel consultancy on Monday.

According to MEPS, a large part of the growth will be coming from China, India, South America and the Middle East as well as other Asian states due to fear in the U.S. and Europe of another banking crisis.

“Bank lending is likely to be quite tightly controlled over the next few years as the spectre of another banking crisis looms large,” MEPS said. “Moreover, there are fears of a double dip recession in the United States and EU which is affecting confidence in future growth rates.”

Stimulus packages provided by government globally have been withdrawn with only the U.S. still suffering from the housing crisis which is keeping the growth in economy sluggish, MEPS said.

“The surge in consumption which developed for much of the last decade is not expected to be repeated as we believe that the lessons of the past have been heeded,” MEPS said. “Overheated economies in Asia are being restrained and profligate bank lending is being contained.”

MEPS says global consumption of steel in 2010 is expected to be approaching 1260 million tonnes which represents an increase of 160 million tonnes from the years’ earlier figure.

By Alex Letourneau of Kitco News aletourneau@kitco.com

Editor’s Note: Meet the Kitco News Team at the upcoming Kitco Metals eConference September 12-13, 2010. A not-to-be missed event featuring Ron Paul, Marc Faber and other industry heavyweights. The eConference is free with Pre- Registration www.kitcoeconf.com.

*****