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Global steel industry perspective – synthesis version
May 03, 2018

Synthesis

Steel is by far the largest material in use, with global demand of ~1.5 bn ton in 2013 (~2 trillion USD industry)

Steel demand to grow at 2-4% p.a. for the next decade before leveling out (demand of ~2 Bn t by 2025-30). Developing regions continue to drive growth (less China, more other developing regions – Asia, Africa)

Overcapacity likely to stay for the foreseeable future (mainly China, CIS, Europe, Japan)

Raw materials costs have quadrupled since 2002. Current margins-over-raw materials are at or even below the levels of before the China boom period

Volatility to stay (demand, prices, margins)

Going forward

– Solve structural overcapacity (globally and by product/region)

– Maximize "resource efficiency": make more products with less resources, maximize the end application value, help other sectors be more efficient

– Avoid commoditization: create value for users, adapt pricing to real (complexity) costs and capture application “value in use”

Vision of steel remaining the most important material on the globe – supported by sound economics, innovation, and resource efficiency








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