Steel the road forward Nicholas Walters Steel A

Steel - the road forward Nicholas Walters

Steel: A key driver of the world’s economy

Steel is everywhere in your life

Sustainable steel: steel at the heart of the green economy

Life Cycle Assessment (LCA): New solutions for new times

Environmental impact: use phase often dominates % contribution of each life cycle phase § The use phase of products often has the greatest environmental impact § Aim of regulations: to reduce use phase impacts § Steel industry involvement to improve use phase § Material production and end-of-life become more important § Move to lighter weight, higher strength steels 6

Environmental impact: use phase often dominates % contribution of each life cycle phase § The use phase of products often has the greatest environmental impact § Aim of regulations: to reduce use phase impacts § Steel industry involvement to improve use phase § Material production and end-of-life become more important § Move to lighter weight, higher strength steels 7

Global economic trends

Global growth expected flat in 2013 but developing economies outlook improving Global GDP developments (%, Real 2005 USD billions) 2009 2010 2012 2013 EU 27 NAFTA S. America CIS Africa Middle East Asia -4. 3 -3. 2 -0. 3 -6. 8 2. 7 1. 3 1. 8 -1. 9 2. 0 2. 6 6. 0 4. 9 4. 7 5. 9 7. 7 4. 2 -0. 2 2. 3 3. 6 5. 0 3. 3 4. 9 2. 6 0. 1 1. 9 3. 3 3. 6 4. 4 2. 2 4. 7 2. 5 Global Source: Global Insight (January 15, 2013), worldsteel 9

Emerging markets drive steel demand at the margin Structure of real GDP & Apparent steel use Developed Developing ex China GDP ASC 2000 78% 56% 18% 27% 3. 6% 16% 2005 75% 40% 26% 5. 0% 33% 2010 70% 24% 22% 31% 7. 6% 45% 2012 69% 23% 32% 8. 5% 45% Source: Global Insight & worldsteel 16% 27% 45% 56% 28% Global apparent steel use (Billions of tonnes, finished) § 2012 another record year for apparent steel use § China’s share of global demand at peak levels Source: worldsteel 10

Other key trends shaping the industry

Demographics and its impact on demand Source: United Nations, worldsteel 12

Urbanisation trends indicate concentration to larger cities Distribution of urban population by type of city: 1970 2010 Source: United Nations 13

Developing regions more steel intensive in important use sectors 60% Developing Developed 50% 40% 30% 20% 10% 0% Construction Industrial goods Consumer goods Source: worldsteel § Urbanisation trends in developing countries contribute to significantly higher steel intensity vis-a-vis developed countries. § While developing countries are less steel intensive in both industrial and consumer goods. 14

What future for the Chinese automotive sector? 15

Volatility of raw materials 16

Steelmaking capacity Source: OECD 17

Changes in technology 18

The future

Design requirements 20

Efficient and optimised production processes 21

Sustainability must apply over the life cycle of steel - Not possible without supply chain collaboration 22

worldsteel. org