India

India’s government is incentivizing the use of steel by providing construction grants for regions that need revitalization. This government money is fueling growth and increasing steel consumption in regions across the country. Some predict that India will increase its rank and surpass China as the top consumer of steel in 2018. This is because India has not yet achieved the level of development China has. In China, the economy is shifting. For years, much of China’s economy was made up of companies in the manufacturing industry, but with a growing upper and middle class, many of China’s industries are going from factories to office spaces. Services are expected to increase in China and lead to a decrease in the need for supplies like steel.

Indian steel consumption is rising thanks to new development projects. (Source: Quora)

SEE ALSO: India: A Rising Sun in the Global Renewable Energy Industry

ASEAN (Association of Southeast Asian Nations)

Vietnam and the Philippines have been named two countries to watch in the ASEAN region. Unlike China and Japan, which have relatively more established economies, Vietnam and the Philippines are still in the development phase. Their rapid development is due in part to the growth of e-commerce. As the Vietnamese and Filipino governments race to build stronger countries, they’ll need steel to make improvements in the country’s infrastructure. Many of the cities in the region are outdated and in need of a total remodel. From creating a solid infrastructure to building offices and housing, steel will be in high demand in Vietnam and the Philippines in 2018.

Many ASEAN cities like Ho Chi Minh City pictured above is ripe for growth and development. (Source: Visa2Vietnam)

CIS (Commonwealth of Independent States)

CIS, also known as the Russian Commonwealth, is a confederation of 11 states made up of Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. While Russia is the biggest and most powerful member state, the developing states are eager to catch up. CIS countries will undergo development projects including major infrastructure construction. Such state-level projects will require large amounts of steel and CIS countries will have to vamp up its own production as well as meet its needs through imports. As CIS countries develop, their citizens quality of life will likely increase, and they are expected to consume more goods such as cars and appliances made of steel as well.  

CIS member states are ripe for development and steel consumption in 2018. (Source: The Kremlin)

Japan

In the summer of 2020, Japan is set to host the biggest global summer games event. The government is investing significantly in this effort to build new sports facilities and other structures to accommodate the global event. A new stadium itself is said to have a budget of over USD 2 billion, and most of the construction will require steel. Japan already has some of the best infrastructure in the world. But it will need to adapt in order to accommodate the large number of visitors Tokyo will host over the three-week event.

Japan will need to build many sports venues such as its new stadium pictured above for 2020. (Source: CNN)

The United States

In the United States, the steel market is consumer-driven, and steel is a USD 113 billion industry. The U.S. is already the largest importer of steel by a wide margin. But the U.S. demand for steel is expected to increase. Steel is used for construction, infrastructure, energy, production, packaging, appliances and manufacturing. Many cities in the U.S. are expanding and improving their infrastructure. Cities like New York and San Francisco have aging buildings and transportation systems that need to be revitalized. Steel construction is also a way of creating more energy efficiency. As U.S. cities move to become more conservative with their natural resources, steel is one of the ways to reduce energy use. Things like steel reinforcements, steel roofs and other upgrades make buildings more efficient. Many household appliances and automobiles are also made of steel. As U.S. consumers purchase household appliances, cars and buildings, the U.S. demand for steel will continue to grow in 2018.

While 2018 will not likely see 2017 rates of growth, the steel industry will continue to grow as demand for steel-based goods increases. As developing countries become more dependent on modernized infrastructure, housing and conveniences, the steel industry will continue to show growth for the foreseeable future. Even in China, where manufacturing is beginning to slow down, there is a great demand for steel. In developing smart cities, for example, steel and technology work together to create more efficient cities for all citizens. Steel infrastructure will play a major role in the improvement of cities across the globe for years to come.

In major cities around the world, industrial activity is creating visible damages. (Source: International Business Times)

In order to meet this mark, industries need to find sustainable sources of fuel in the near future, or be met with costly penalties. Up to now, the price of non-renewable fuel was too attractive for clean energy to be competitive. However, tighter regulations, major leaps in technology and state-level commitment have birthed a new era of renewable energy.

Energy you can bank on

According to Bloomberg analysts, USD 10.2 trillion will be spent on new power generation by 2040, 72 percent of which will go towards wind and solar photovoltaic plants. By then, the cost of solar electricity will drop 66 percent, meaning by 2021, solar power will be cheaper than energy from coal in China, India, Mexico and the UK. The cost of onshore wind power will decrease by 47 percent by 2040, and offshore wind power by 71 percent thanks to more advanced and cost-effective wind turbines.  

Renewable energy is getting more and more competitive, and companies who don’t make the switch to clean fuel will be left out of the race.

SEE ALSO: How POSCO Sees a Future of Renewable Energy

However, electricity doesn’t fall from trees.

It falls from steel! Tons of steel (literally) are used to extract and convert energy from renewable energy sources.

Wind Energy

Most wind turbines are made of steel, and for an average wind turbine, 140 tons of steel are used. That accounts for 80 percent of all the materials that go into the tower, the nacelle, rotor blades and its supporting facilities. The majority of steel is used to make the tower which serves as the foundation on which the blades turn to generate energy. There are several types of turbine towers, such as steel-concrete hybrid towers, steel truss towers and steel lattice towers, but about 90 percent of all wind turbine towers are made of tubular steel. Also, steel’s non-corrosive properties maximize the lifetime of wind turbines and minimize maintenance costs.

Solar Energy

Solar electricity is one of the most promising types of renewable energy. By as soon as 2030, it can make up 13 percent of the world’s energy, and by 2050, the sun will be the largest source of electricity on earth. And steel will be soaking it all up – the sunlight that is. Steel makes up not only the frame of the solar panels, but the heat exchangers and other related infrastructure. Stainless steel is a great choice for solar panel frames because it is dense, high in strength and has the greatest corrosion-resistance than other light metals.  

SEE ALSO: India: A Rising Sun in the Global Renewable Energy Industry

Geothermal Energy

Mother earth just keeps on giving. There are about 1400 TWh of geothermal energy in the earth’s core that can be harvested by 2050. Geothermal energy gives off extreme heat, so it is vital for the heat exchangers, condensers, pipes, filters, pumps and valves to be corrosion resistant. Otherwise, maintenance costs would be unsustainable and corrosion can contaminate the water as well. That’s why most of the infrastructure related to geothermal energy is made of iron castings, stainless steel and steel alloys.

Tidal Energy

There’s plenty of energy in the sea as well. In the world’s oceans, there are about 1 million megawatts of usable tidal energy. Steel makes up most parts of the underwater turbines including the nacelles, support structures and underlying piles for a sturdy and sustainable power source. As with other renewable energy, increasing the lifetime and decreasing maintenance costs will determine the competitiveness of tidal energy. Thus, stainless steel is the go-to material for corrosion resistance. The infrastructure related to tidal energy extraction is massive in scale and will call for thousands and thousands of pounds of steel to construct.  

Korea is the largest source of tidal energy in the world, with 552.7 GHw of electricity harvested from Siwha Lake every year. It’s also where steelmaker POSCO is located to provide the necessary types and grades of steel for renewable energy production.

POSCO E&C has its own solar, wind, tidal and refuse-derived fuel (RDF) plants, which makes sure even industrial wastes get turned into energy. The company was also the first company in Korea to build a solar power plant in 8 different regions capable of generating 31.2MW of solar electricity.

In order to stay competitive in the market, industries are already using or transitioning towards renewable energy sources to fuel their business activities. As governments around the globe also commit to a greener future, the demand for steel used in renewable energy infrastructure will see a significant boost.

Cover photo courtesy of the National Geographic.