Page 14 - Steel Tech India eMagazine Volume January 2021

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In other words, around 15% of global primary demand tensions and low margins for producers. The steel
for coal is sourced for the steel industry. Coal is largely industry and our global economic system are therefore
consumed in the blast furnace, a major proportion of deeply intertwined. Steel needs energy and the energy
which is transformed from coal to coke in the coke oven system needs steel. Even though the stock of steel
beforehand. in advanced economies saturate, it will be required
Steel industry accounts for nearly 7% of total GHG to support a growing population and rising levels of
emissions and after power and chemical sector is economic welfare, particularly in emerging economies.
the third largest emitter of carbon dioxide. Since the Iron and steel production are a highly energyintensive
technologies for reducing the carbon emissions are yet KPFWUVTKCN UGEVQT CEEQWPVKPI HQT QH KPFWUVTKCN ſPCN
to be technically feasible and economically viable, steel GPGTI[ EQPUWORVKQP CPF CTQWPF QH VQVCN ſPCN GPGTI[
is considered as hard to abate sector. consumption.
Steel is also a critical input for the clean energy
Steel: An Indispensable Alloy
transition. Steel is a key input material for wind turbines,
Life of Steel production assets are reasonably long. transmission and distribution infrastructure, hydropower
Most of it is produced through the traditional Blast and nuclear power plants, among other critical energy
Furnace – Basic Oxygen Furnace (BF- BOF) route. sector assets. While being a facilitator of the clean
While, the basic counter-current blast furnace process energy transition, steel is also a large contributor to the
for producing iron has remained the same for centuries, current challenge we face in meeting our climate goals:
yet breakthrough improvements in cooling technology, direct CO emissions.
process automation & allied processes ensured that 2
Steel Demand in India to Grow
it stays ahead of both competing materials as well as
competing iron making technologies. As per IEA, the dominance of the China in global
production declines from just over 50% today to 35%
Alternate materials like composites, glass, plastics, in 2050, as India’s production more than triples to cater
CNWOKPWO QT ECTDQP ſDGT JCXG HQWPF KV FKHſEWNV VQ for booming domestic demand. A dynamic growth is
completely replace this alloy of iron, because of expected to take place in many emerging economies,
following characteristics:
particularly in India. This compensates for the decline
Ŗ (QT KVU EQUV UVGGN JCU VJG JKIJGUV UVTGPIVJ VQ YGKIJV in output from China, which is in the process of shifting
ratio its industrial structure towards less energy-intensive
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properties infrastructure and housing development.

Ŗ 6JG GZKUVKPI GEQU[UVGO QH UVGGN HQT GFWECVKQP As of now, India’s per capita steel consumption is only
manufacturing, design & supply chain has taken one-third of the world average. However, various studies
FGECFGU VQ DWKNF CPF KU FKHſEWNV VQ TGRNKECVG suggest and predict that increasing population, rapid
So, steel continues to remain a material of choice for urbanisation, mobility and infrastructure requirements
sectors like Construction, Auto, Capital Goods and and government initiatives such as ‘Make in India’ are
Consumer Durables. expected to boost steel demand growth. In addition, the
government’s focus on accelerating the rural economy
By 2050, the cost of steel production is likely to increase and plans for building smart cities, affordable housing,
as the need to decarbonise steel takes precedence, dedicated freight and high-speed rail corridors, are
yet, production of steel will be higher as compared to GZRGEVGF VQ ETGCVG UKIPKſECPV FGOCPF HQT UVGGN 6JG
current levels to meet growing demand of emerging National Steel Policy (NSP) envisages per capita steel
markets.
consumption to almost double to 160 kg by 2030-31.
Steel is the third most abundant man-made bulk With a leadership position in chosen market segments
material on earth, after cement and timber. The steel and world-class production facilities, Tata Steel is well
industry forms an integral part of many economies and RQKUGF VQ DGPGſV HTQO VJKU NCTIG QRRQTVWPKV[
is also one of the most widely traded commodities in
the world, with producers competing in an international At Tata Steel
market. The industry has faced several economic Cognisant of India’s commitment and the sectoral
shocks in recent years, including overcapacity, trade requirements, Tata Steel India (TSI) has been able to

12 STEEL TECH