Global steel demand is anticipated to experience a growth of 1.7% in 2024, following a projected rebound of 2.3% this year, as stated by a World Steel Association (WSA) executive on Tuesday. This optimistic outlook is based on the expected recovery in manufacturing activities.
According to Frank Zhong, the deputy director general of the Association of Southeast Asian Nations (ASEAN), steel demand in the region is expected to double by 2035, soaring from the current 80 million tonnes to an impressive level. Zhong conveyed this information during an industry conference.
In the near term, the steel industry will concentrate its efforts on enhancing the energy efficiency of existing facilities and maximizing the utilization of steel scrap. This focus aims to reduce the carbon footprint of the industry, as emphasized by Zhong.
He emphasized the significance of scrap in this regard, stating, “Scrap will play a critical role, and iron ore will be the primary player.”
Zhong further added that the global availability of scrap steel is anticipated to climb to approximately 1.1 billion to 1.2 billion tonnes in the next three decades, a substantial increase from the current 700 million tonnes. This upward trend in availability highlights the industry’s commitment to sustainable practices.
In summary, the steel sector expects a positive trajectory with a 1.7% growth in global demand in 2024. Additionally, ASEAN anticipates an impressive doubling of steel demand by 2035.
To mitigate environmental impact, the industry is focused on optimizing energy efficiency and maximizing the use of steel scrap. This strategic approach positions scrap as a crucial factor, while iron ore maintains its role as a primary resource.
Projections also indicate a significant increase in the availability of scrap steel, reaching 1.1 billion to 1.2 billion tonnes in the coming decades.
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