Giving the opening address at the 51st annual meeting of worldsteel (World Steel Association) held in Brussels on October 16-17, Dr. Edwin Basson, director general of worldsteel, remarked that at the meeting 50 years ago in Brussels at which the association was founded there were 20 members representing a 27 percent share of a global steel output equal to 493 million mt, whereas the association now has 163 members representing an 85 percent share of a global output in excess of 1.6 billion mt. Looking around at the members present at the current annual meeting, he pointed out that none of the founding members still existed in name, having been incorporated in another companies via M&As or takeovers. He said this was evidence of an industry which is comfortable with the process of change. He stressed that the steel industry was fortunate as it was a generator and enable of economic growth, while no material able to replace steel had yet been found. The worldsteel director said that, accordingly, the global steel industry can look forward to the future with confidence, especially having emerged from the financial crisis, while it has also learned to deal with greater volatility. In addition, consolidation has contributed to its sustainability, while consolidation is still continuing, he stated.
Dr. Basson also mentioned that locations of markets have shifted, bringing in their wake new cultural and political pressures. Digitization is becoming more widespread, and the steel industry will have to develop along this path. Among the challenges facing the steel industry in the future, he said, is the need to focus on value rather than on volume. In fact, previously the steel industry had begun to do this, but then China came along and then everybody started to jump on the capacity wagon, resulting in the industry’s current problems, though the industry has already started to focus on value again.
Among other challenges, Basson remarked that the more steel is recycled, the less need there will be for new steel capacities, while he also stressed the need to adapt to a slower growth model. He added that research into new products is vital for the steel industry, while closer collaboration with customers will also be essential. He ended by expressing confidence that the steel industry would thus be able to face future challenges successfully.