Global trends impacting the steel industry

Climate change and scarce resources	Digitalization	Changing global market conditions	Population growth and urbanization
• Increasing demand for steel with a low climate impact • Increasing cost of carbon emissions but also higher costs for decarbonization • Development of more resource- and carbon efficient products and processes • Climate change can affect production and supply chains	• Digital services provide greater availability of more efficient control systems and increased transparency in the value chain • E-commerce and digital platforms impact market dynamics	• Higher importance of regional markets because of growing protectionism and trade policy restrictions • Reinforced trend of increased regionalization, among other things attributable to Russia's invasion of Ukraine and the Covid pandemic • Increasing demand for steel in emerging economies	• Increasing demand for steel in the construction, infrastructure and energy sectors • Increasing demand for sustainable and energy-efficient buildings and traffic solutions

Climate change and scarce resources

Digitalization

Changing global market conditions

Population growth and urbanization

• Increasing demand for steel with a low climate impact

• Increasing cost of carbon emissions but also higher costs for decarbonization

• Development of more resource- and carbon efficient products and processes

• Climate change can affect production and supply chains

• Digital services provide greater availability of more efficient control systems and increased transparency in the value chain

• E-commerce and digital platforms impact market dynamics

• Higher importance of regional markets because of growing protectionism and trade policy restrictions

• Reinforced trend of increased regionalization, among other things attributable to Russia's invasion of Ukraine and the Covid pandemic

• Increasing demand for steel in emerging economies

• Increasing demand for steel in the construction, infrastructure and energy sectors

• Increasing demand for sustainable and energy-efficient buildings and traffic solutions

Steel market dynamics

Market dynamics	Demand and capacity	Competition	Trade
• Demand for applications with higher productivity and lower weight • Increasingly regional supply chains • Continued interest in steel with low CO₂ emissions • Increasing interest in steel produced with recycled scrap steel • High volatility in demand and prices for standard products	• Global capacity utilization at a relatively good level • Uncertain economic development • Continued volatile steel prices	• Various transformation projects in Europe, also start-ups • Increasing capacity in the USA • Increasing capacity for scrap-based steel production	• Increasing exports of steel from Asia • Continued various protectionist measures • EU's Carbon Border Adjustment Mechanism (CBAM) is expected to impact the European steel industry

Market dynamics

Demand and capacity

Competition

Trade

• Demand for applications with higher productivity and lower weight

• Increasingly regional supply chains

• Continued interest in steel with low CO₂ emissions

• Increasing interest in steel produced with recycled scrap steel

• High volatility in demand and prices for standard products

• Global capacity utilization at a relatively good level

• Uncertain economic development

• Continued volatile steel prices

• Various transformation projects in Europe, also start-ups

• Increasing capacity in the USA

• Increasing capacity for scrap-based steel production

• Increasing exports of steel from Asia

• Continued various protectionist measures

• EU's Carbon Border Adjustment Mechanism (CBAM) is expected to impact the European steel industry