Transcript A Global Sectoral Steel Approach

Steel - the road forward
Nicholas Walters
Steel: A key driver of the world’s economy
Steel is everywhere in your life
Sustainable steel: steel at the heart of the green economy
Life Cycle Assessment (LCA):
New solutions for new times
Environmental impact: use phase often dominates
% contribution of each life cycle phase
Raw materials
Material
production
Manufacturing
Use phase
End of life
 The use phase of products often has the greatest environmental impact
 Aim of regulations: to reduce use phase impacts
 Steel industry involvement to improve use phase
 Material production and end-of-life become more important
 Move to lighter weight, higher strength steels
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Environmental impact: use phase often dominates
% contribution of each life cycle phase
Raw materials
Material
production
Manufacturing
Use phase
End of life
 The use phase of products often has the greatest environmental impact
 Aim of regulations: to reduce use phase impacts
 Steel industry involvement to improve use phase
 Material production and end-of-life become more important
 Move to lighter weight, higher strength steels
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Global economic trends
Global growth expected flat in 2013 but developing
economies outlook improving
Global GDP developments (%, Real 2005 USD billions)
EU27
NAFTA
S.America
CIS
Africa
Middle East
Asia
Global
2009
2010
2012
2013
-4.3
-3.2
-0.3
-6.8
2.7
1.3
1.8
-1.9
2.0
2.6
6.0
4.9
4.7
5.9
7.7
4.2
-0.2
2.3
2.3
3.6
5.0
3.3
4.9
2.6
0.1
1.9
3.3
3.6
4.4
2.2
4.7
2.5
Source: Global Insight (January 15, 2013), worldsteel
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Emerging markets drive steel demand at the margin
Structure of real GDP & Apparent steel use
Developed
Developing ex China
China
GDP
ASC
GDP
ASC
GDP
ASC
2000
78%
56%
18%
27%
3.6%
16%
2005
75%
40%
20%
26%
5.0%
33%
2010
70%
24%
22%
31%
7.6%
45%
2012
69%
23%
23%
32%
8.5%
45%
Source: Global Insight & worldsteel
Global apparent steel use (Billions of tonnes, finished)
1.6
Developing ex China
China
Developed
28%
1.4
1.2
1.0
0.0
45%
0.2
26%
0.4
16% 27%
0.6
56%
0.8
 2012 another record year for
apparent steel use
 China’s share of global demand
at peak levels
Source: worldsteel
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Other key trends shaping the industry
Demographics and its impact on demand
Source: United Nations, worldsteel
12
Urbanisation trends indicate concentration to larger cities
Distribution of urban population by type of city:
1970
2010
Source: United Nations
13
Developing regions more steel intensive in important use
sectors
60%
Developing
Developed
50%
40%
30%
20%
10%
0%
Construction
Industrial goods
Consumer goods
Source: worldsteel
 Urbanisation trends in developing countries contribute to significantly higher
steel intensity vis-a-vis developed countries.
 While developing countries are less steel intensive in both industrial and
consumer goods.
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What future for the Chinese automotive sector?
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Volatility of raw materials
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Steelmaking capacity
Source: OECD
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Changes in technology
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The future
Design requirements
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Efficient and optimised production processes
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Sustainability must apply over the life cycle of steel
- Not possible without supply chain collaboration
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worldsteel.org