The global steel industry has reached \u00aban important inflection point\u00bb that requires steelmakers to consider new strategies to survive, World Steel Association Director General Edwin Basson said May 11.<\/p>\n
Speaking during the Eurometal World Steel Distribution & SSC Summit in Dusseldorf, Germany, Basson said current global installed steel capacity, which is about 2.39 billion tonnes, is already enough to meet supply requirements through 2035.<\/p>\n
Finished steel demand is likely to be about 1.535 billion tonnes in 2017, up only 1.3% from the previous year, and nearly 1.549 billion tonnes in 2018, an increase of 0.9% year on year. Strong steel demand growth in developing countries will offset stabilizing demand in developed economies, but it means mostly flat overall global demand is likely for the next two decades or more, Basson added.<\/p>\n
Combine those factors with declining trends in steel use, due in part to increased production of high-strength lightweight steels and a sharper focus on reuse and recycling, and the outcome is clear.<\/p>\n
\u00abWe believe that steel demand, in terms of volume, has reached an important inflection point,\u00bb he said. \u00abIt will continue to grow, but the growth … is going to be much slower than it has been in the past two decades.\u00bb<\/p>\n
Basson said a ton of steel remains in use for an average of 47 years in Europe, 44 in the U.S. and less than 40 in China. The global average is about 45 years. With technological improvements resulting in less steel being required in many applications and yielding longer lifespans for the material, those averages are likely to increase, he said.<\/p>\n
\u00abIf it’s only five years that we’re extending the life of steel, it means that we’re pushing that demand forward five years,\u00bb Basson said. \u00abAs steelmakers and users of steel, we should begin to plan around this [knock-on effect].\u00bb
\nIn addition, as emerging economies have developed their own domestic steel industries, and global overcapacity has pushed tons into the export market, trade case filings in the U.S. and Europe, in particular, have increased in volume in recent years. Basson cautioned that such a strategy is unlikely to be sustainable.<\/p>\n
\u00abProtectionism can help us in the short term … but it cannot in the long term provide stability in an industry that is driven by global forces,\u00bb he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
The global steel industry has reached \u00aban important inflection point\u00bb that requires steelmakers to consider new strategies to survive, World Steel Association Director General Edwin Basson said May 11. Speaking during the Eurometal World Steel Distribution & SSC Summit in Dusseldorf, Germany, Basson said current global installed steel capacity, which is about 2.39 billion tonnes, … <\/p>\n