Global trends impacting the steel industry

Global trends impacting the steel industry

Climate change and scarce resources
Digitalization
Changing global market conditions
Population growth and urbanization

• Increasing demand for steel with a low climate impact

• Increasing cost of carbon emissions but also higher costs for decarbonization

• Development of more resource- and carbon efficient products and processes

• Climate change can affect production and supply chains

• Digital services provide greater availability of more efficient control systems and increased transparency in the value chain

• E-commerce and digital platforms impact market dynamics

• Higher importance of regional markets because of growing protectionism and trade policy restrictions

• Reinforced trend of increased regionalization, among other things attributable to Russia's invasion of Ukraine and the Covid pandemic

• Increasing demand for steel in emerging economies

• Increasing demand for steel in the construction, infrastructure and energy sectors

• Increasing demand for sustainable and energy-efficient buildings and traffic solutions

Steel market dynamics

Market dynamics
Demand and capacity
Competition
Trade

• Demand for applications with higher productivity and lower weight

• Increasingly regional supply chains

• Continued interest in steel with low CO2 emissions

• Increasing interest in steel produced with recycled scrap steel

• High volatility in demand and prices for standard products

• Global capacity utilization at a relatively good level

• Uncertain economic development

• Continued volatile steel prices

• Various transformation projects in Europe, also start-ups

• Increasing capacity in the USA

• Increasing capacity for scrap-based steel production

• Increasing exports of steel from Asia

• Continued various protectionist measures

• EU's Carbon Border Adjustment Mechanism (CBAM) is expected to impact the European steel industry