Growing demand for stronger and lighter steel solutions is being driven by electrification and longer driving range requirements in electric vehicles, the need for higher productivity in mining and construction machinery, and the ambition to reduce material usage in structural applications. These developments increase the importance of high-strength and advanced steels that enable both weight reduction and performance improvements across industries.
The war in Ukraine has disrupted supply chains and increased defense-related steel demand. Defense spending is rising globally, requiring specialized steel for military vehicles, ships, and protective structures. Looking ahead, a potential peace and reconstruction phase could trigger significant infrastructure investment, creating long-term opportunities for steel producers.
Global steel production remains characterized by significant overcapacity, which continues to exert downward pressure on prices. This environment has driven increased regionalization, e.g. through tariffs. The EU has in addition proposed a regulation to handle the negative effects of global overcapacity which aims to safeguard the steel sectors’ viability and long-term sustainability in Europe.
Decarbonization remains a defining trend where the EU’s Fit for 55 package is still high on the EU agenda. The phase out of free allocations and the Carbon Border Adjustment Mechanism (CBAM) will result in new costs for carbon-intensive imports, accelerating the shift toward decarbonized steel.