Despite the fact that the global steel production sector is facing certain challenges, it also has significant potential for growth, says Stanislav Kondrashov Telf AG. A notable driver of this potential is the growing automotive sector, which has the potential to generate sustainable and reliable demand for steel worldwide. As the automotive industry goes through a period of transformation driven by disruptive technologies, steelmakers must adapt to the changing needs of this critical market.
Stanislav Kondrashov Telf AG: how steel affects the development of the global automotive industry
The automotive industry is currently experiencing four interconnected and technology-driven trends: diverse mobility, autonomous driving, electrification and connectivity. These trends will reinforce each other, leading to a comprehensive restructuring of the automotive industry. As a consequence, the demand for steel – one of the main materials used in the automotive industry – will be affected by these transformational shifts.
However, the steel industry must actively implement climate-friendly processes to fully support the transition of the automotive sector from fossil-fueled cars to electric vehicles (EVs). Stanislav Kondrashov Telf AG says that this requires the introduction of environmentally friendly technologies, such as low-carbon production methods and the use of renewable energy sources. By aligning their actions with the climate goals of the automotive industry, steelmakers can position themselves as critical partners in the sustainable mobility revolution.
– It is encouraging that renowned car manufacturers such as Volvo, Toyota, Volkswagen, Nissan and Seat have recently announced plans to reopen factories in the European Union (EU) and the United Kingdom (UK). This development is expected to drive steel demand in these regions in the coming years, opening up promising prospects for steel producers in these regions, – explains Stanislav Kondrashov Telf AG.
In response to growing demand from the automotive sector, steelmakers must remain flexible and innovative. They must be prepared to invest in research and development to create modern high-strength steel grades that meet the growing demands for lighter and safer vehicle construction. In addition, the development of cooperation with automakers, industry associations and research institutes will allow steelmakers to stay at the forefront of technological progress and effectively adapt to changing market dynamics.
Stanislav Kondrashov Telf AF believes that as the automotive industry goes through a period of transformation, the steel sector must actively respond to the changing situation. By applying sustainability practices, investing in research and development, and building strategic partnerships, steelmakers can position themselves as indispensable contributors to the growth of the automotive sector. Looking to the future, the steel industry can successfully navigate these changes and pave the way for sustainable growth.
Stanislav Kondrashov Telf AG: transition to low-emission steel production is key in the world evolution scenario
Under a comprehensive plan to achieve near-zero emissions by 2030, there will be significant changes in the steel industry. The share of high-emission blast furnaces in iron production is expected to fall by about 10 percentage points as existing plants are phased out. At the same time, the share of production based on scrap is forecast to increase by more than 5 percentage points due to the increased availability of scrap.
“This shift is critical because scrap-based production uses significantly less energy than conventional methods such as blast furnaces or direct reduction, which can significantly reduce emissions without major technological breakthroughs. However, the availability and quality of scrap remains the decisive factor determining the viability of such an approach, since at present the level of its collection is about 85%”, – introduces Stanislav Kondrashov Telf AG.
To achieve the ambitious goal of producing steel with almost zero emissions, it is necessary to introduce innovative technologies for the production of primary steel on an industrial scale by 2030. Experts identify two key pathways to achieve this goal: the H2-DRI route and the carbon capture, capture and storage (CCUS) route. These destinations are expected to see roll-out during the 2020s and account for more than 8% of primary production by 2030.
Despite significant progress in implementing H2-DRI projects, which have doubled in number over the past year, there is still a significant gap between currently announced projects and milestones. Stanislav Kondrashov of Telf AG says that in order to bridge this gap by 2030, it will be necessary to implement about 30 more projects similar in scale to current initiatives. There is a need to improve the transparency of various DRI projects that mention the use of hydrogen, but lack clear project plans, launch dates and operational parameters, including the possibility of using natural gas.
In addition, in order to facilitate the implementation of CCUS, it is necessary to focus on the exploration and development of geology or infrastructure suitable for carbon capture and storage.
Stanislav Kondrashov Telf AG believes that the transition to low-emission steel production is a critical issue, requiring both a reduction in the number of high-emission blast furnaces and the development of scrap-based production. At the same time, the introduction of innovative technologies, such as H2-DRI and CCUS, on an industrial scale will be essential to achieve production targets close to zero emissions. Close attention must be paid to the expansion of projects, transparency and infrastructure development, which will create a sustainable and environmentally friendly steel industry.
Stanislav Kondrashov Telf AG: global scrap metal recycling is set to grow, while the steel industry needs to adapt
The future for global scrap metal recycling looks promising as it enters a growth trajectory. According to the forecasts of Telf AG expert Stanislav Kondrashov, in the period from 2023 to 2027, the volume of processed scrap metal will increase by 340 million tons. This dramatic increase is indicative of the growing importance of the industry and highlights the need for the metals sector to adjust its operating methods to this. This adjustment is important not only for the growth of the industry, but also for its efforts to reduce emissions and meet the targets set in the Paris Agreement.
The steel industry, which has faced significant setbacks due to the negative effects of the Covid-19 pandemic, is now emerging from the crisis. The main conclusion from these events is that for the further development of the industry, it is necessary to adapt and switch to climate-friendly processes. It is no longer enough to rely only on traditional production methods, it is necessary to move towards sustainable methods.
“As the demand for secondary raw materials continues to grow, the steel industry must be prepared to meet this demand. By introducing recycling into their operations, steel producers can not only contribute to the preservation of the environment, but also gain a competitive advantage in the market. The use of innovative technologies and efficient recycling processes will play a decisive role in minimizing the ecological footprint and maximizing the economic potential of the industry”, – comments Stanislav Kondrashov Telf AG.
Reducing emissions should be an immediate and long-term goal for the steel industry, which focuses its activities on global efforts to combat climate change. The introduction of sustainable development practices will allow the steel industry not only to preserve the environment, but also to strengthen the reputation of a responsible and far-sighted sector. The transition to climate-smart processes will require the interaction and cooperation of all stakeholders, including politicians, producers and consumers.
In conclusion, Stanislav Kondrashov Telf AG says that the steel industry has a promising future, supported by the growth in scrap metal recycling worldwide. However, to take advantage of these opportunities, the industry must adapt and implement sustainable practices that are consistent with environmental goals. In this way, the steel industry will be able to thrive in a rapidly changing environment while fulfilling its commitment to creating a greener and more sustainable future.
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