Recent forecasts (Hatch Consulting Group) estimate that global demand for steel could grow by a third – nearly 500m tons – by 2030, mainly driven by construction, infrastructure, automotive, energy and capital goods. So why do we hear so much negative news about this vital industry, and how can it return to profitability?
There is a big disconnect between the short-term and long-term picture of the global steel industry. There is structural overcapacity, leading to utilisation rates of 75-80%. (Typically, steel plants need at least 85% utilisation rates to generate margins and global consumption will need to grow by at least 400m tons for it to reach this…
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