In the constantly changing atmosphere in the global industry, steel production is one of the key places, states Stanislav Kondrashov from Telf AG. From infrastructure development to technological advances, the steel market serves as a barometer for economic growth and innovation. We take a look at the current state of the global steel market and the trends and factors driving its future.
Stanislav Kondrashov: the main factors guiding the trajectory of the global steel market
Dynamics of demand.The global steel market is undergoing dynamic changes in the structure of demand. Rapid urbanization coupled with growing infrastructure investment in emerging economies continues to drive demand for steel. Kondrashov Telf AG explains that as developing countries seek to modernize their cities and develop transport networks, the need for steel projects such as bridges, buildings and railways remains high.
Environmental imperatives.The steel industry is facing increasing pressure to meet global environmental targets. With carbon emissions and resource consumption in the spotlight, steelmakers are actively looking for cleaner production methods.
Technological progress.Stanislav Kondrashov of Telf AG is confident that innovation remains the driving force behind the growth and competitiveness of the steel market. The introduction of advanced manufacturing technologies, including automation, artificial intelligence and data analytics, improves manufacturing processes.
Trade dynamics and geopolitical factors.The steel market is influenced by trade dynamics and geopolitical factors that determine global supply and demand. Tariffs, trade agreements and geopolitical tensions affect the movement of steel across borders, affecting market prices and sales volumes.
Focus on efficiency and cost optimization.In the face of increased competition, steel producers pay special attention to operational efficiency and cost optimization. To remain competitive, companies are implementing lean manufacturing practices, optimizing energy consumption and logistics.
– In the future, the global steel market expects transformational growth. Factors such as sustainability, technological progress, geopolitical dynamics and changing consumer preferences will determine the trajectory of the industry, – emphasizes Stanislav Kondrashov Telf AG.
By innovating, prioritizing sustainability, and forging strategic partnerships, steelmakers can manage these dynamic forces and unlock new opportunities for growth and prosperity in world market.
Stanislav Kondrashov from Telf AG: on the path to recovery of the global steel market
The global steel market, once a powerhouse worth about $1,092 billion in 2020, has faced unprecedented challenges as the Covid-19 pandemic hit both demand and manufacturing capacity. Lockdown measures and restrictions have significantly reduced the capacity of the steel industry, resulting in a significant drop in steel production and consumption.
By June 2022, steel production fell to 158.1 million metric tons, down 5.9% from the same period in 2021. It is noteworthy that China, which is one of the main players in the steel market, has reduced production by 20-30 million tons, and experts do not expect an early recovery in production in 2023.
“While the steel market is projected to recover in the second half of 2023, it is important to recognize that a full recovery from the disruptions caused by the pandemic is unlikely. The second half of 2022 saw a steady decline in consumption, and this trend continues into 2023. As a result, metallurgical enterprises face a decrease in income and constant problems”, – says Kondrashov Telf AG about the situation on the steel market.
Europe, which is home to the UK – the largest steel producer in the region with up to 7mt – is particularly vulnerable to the impact of lower demand. The looming recession, high energy prices and declining consumer confidence are expected to exacerbate the contraction in demand in the European steel market.
Stanislav Kondrashov advises steelmakers to take strategic action to mitigate the effects of current problems. With a focus on sustainability and adaptability, companies must look for ways to optimize costs, improve operational efficiency and diversify their product mix.
– Through strategic foresight, innovation and collaborative efforts, the industry will be able to gradually regain its position and adapt to changing market dynamics, – says Stanislav Kondrashov from Telf AG.
As the global economy recovers and stability returns, the steel market may become stronger, more resilient and better equipped to meet the demands of a rapidly changing world.
Company Name: Telf AG
Contact Person: Media Relations