{"id":280963,"date":"2024-03-14T06:52:57","date_gmt":"2024-03-14T06:52:57","guid":{"rendered":"https:\/\/siit.co\/guestposts\/?p=280963"},"modified":"2024-03-14T06:53:31","modified_gmt":"2024-03-14T06:53:31","slug":"decoding-green-steel-demand-growth-in-india-and-abroad","status":"publish","type":"post","link":"https:\/\/siit.co\/guestposts\/decoding-green-steel-demand-growth-in-india-and-abroad\/","title":{"rendered":"Decoding Green Steel Demand Growth In India And Abroad"},"content":{"rendered":"

As per the <\/span>India Steel Association,<\/span><\/i> by 2030, it is estimated that the global green steel (GS)\/low-emission carbon steel demand is set to grow to approximately 180-200 MT. Approximately, it is a 10% increase in total steel demand. By 2040, the demand is forecasted to double up to 450-475 MT. It is an increase of around 20% of the total steel demand. In this article, let\u2019s explore more about green steel, its demand, and <\/span>iron scrap prices today<\/strong><\/span><\/a>.<\/span><\/p>\n

Key Demand Drivers<\/b><\/h2>\n

There are some regions that are likely to propel the green steel demand. To be specific, the <\/span>United States<\/span><\/i> and the <\/span>European Union<\/span><\/i> collectively will represent approximately 50% of the total global green steel demand. When it comes to regulations, <\/span>European<\/span><\/i> steelmakers are subjected to strict regulatory decarbonization scrutiny, with a net zero goal for 2050.<\/span><\/p>\n

Let\u2019s have a look at the region-wise demand scenario:<\/span><\/p>\n

    \n
  1. <\/b> \u00a0 <\/span> North America:<\/b> The region is likely to contribute to substantial demand of approx. 25-30% by the end of 2030. The ambitious goal of automotive companies pushing for low-emission carbon flat steel will add to the demand. Offering subsidies like the <\/span>Inflation Reduction Act<\/span><\/i> with a USD 369 billion package is expected to incentivize the clean energy push.<\/span><\/li>\n
  2. <\/b> \u00a0 <\/span> Europe<\/b>: The region could contribute by up to 30-35% to green steel demand. Majorly, voluntary commitments with the free allowances withdrawal of the <\/span>EU Emissions Trading System<\/span><\/i> (ETS)<\/span><\/i> in the mid-2030s will drive the demand.<\/span><\/li>\n
  3. <\/b> \u00a0 <\/span> Asia: <\/b>In<\/span> the developed regions, domestic firms are estimated to boost the demand setting high decarbonisation targets, way before policy measures kick in. As far as developing <\/span>Asia<\/span><\/i> is concerned, foreign companies might boost the demand as they decarbonize their sales abroad.<\/span><\/li>\n<\/ol>\n

    \u00a0<\/span><\/p>\n

    Sector-wise Demand<\/b><\/h2>\n

    In addition to regulations, the green steel demand is impacted by the <\/span>Scope 3<\/span><\/i> emission reduction goals of the steel customers. For instance, in <\/span>Europe<\/span><\/i>, companies operating in the construction, automotive, electrical & electronics industries have <\/span>Scope 3<\/span><\/i> targets, where the steel customers ask for green steel from their suppliers. Several leading automotive firms have fixed a target for reducing 100% <\/span>Scope 3<\/span><\/i> by the end of 2030. On the other hand, various construction companies have set <\/span>Scope 3<\/span><\/i> reduction targets ranging between 30%-50 % by the end of 2030.<\/span><\/p>\n

    The transportation sector is likely to generate 34% of the total green steel demand by 2030. In addition to that, the construction sector is estimated to lead the global green steel demand. Since the installed base of renewables rises, the energy sector is likely to generate more green materials demand throughout the value chain. On a different note, <\/span>iron scrap prices today range between Rs. <\/span>30-60.\u00a0<\/span><\/p>\n

    \u00a0<\/span><\/p>\n

    Demand In India<\/b><\/h2>\n

    Here are the details:<\/span><\/p>\n