Steel industry in a sustainable societyEdwin Basson, Rio, 19 June 2012

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This document is protected by copyright.

Distribution to third parties or reproduction in any format is not

permitted without written permission from worldsteel

worldsteel – what is our role?

worldsteel provides global leadership on all major strategic

issues affecting the industry

worldsteel promotes steel and the steel industry

steel industry: a vital part of society

worldsteel assists its members

to develop the market for steel and to improve their performance

managing major projects such as

Future Steel Vehicle

Living Steel

India Steel Vision 2020 and China Steel Vision 2020

worldsteel safety and health principles

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Key facts – worldsteel today

146 Members:

65 Regular (production > 1.8 Mt)

31 Associate (production < 1.8 Mt)

50 Affiliated (Regional and National Associations and Steel

Research Institutes)

17 of the world’s 20 largest companies are members

Membership HQs are located over 50 countries

worldsteel headquarters in Brussels, second office in Beijing

Any producer with more than 2 million short tons (1.8 metric) of

crude steel production can become a regular member of

worldsteel

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Steel is a cornerstone and key driver for the

world’s economy.

6

0

400

800

1200

1600

1950 1960 1970 1980 1990 2000 2010

Global growth in steel production is linked to humandevelopment

Years Mln t

1970 595

1975 644

1980 717

1985 719

1990 770

1995 752

2000 849

2005 1144

2010 1414

2011 1,518

Source: worldsteel

World crude steel production, 1950-2011

Steel a key driver of the world’s economy

World crude steel production has increased from 851 megatonnes (Mt) in 2001 to 1,518 Mt in 2011 (28.3 Mt in 1900).

The industry directly employs 2 million people worldwide, with a further 2 million contractors and 4 million in supporting industries.

Considering steel’s position as the key product supplier to industries such as automotive, construction, transport, power and machine goods then using a multiplier of 25:1 the steel industry is at the source of employment for more than 50 million people.

World average steel use per capita has steadily increased from 150kg in 2001 to 220kg in 2010.

India, Brazil, Korea and Turkey have all entered the top 10 steel producers list in the last 40 years.

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Steel touches every aspect of our lives.

No other material has the same unique

combination of strength, formability

and versatility.

9

All products

Source: worldsteel

51 percent of global steel is used for construction

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Steel is at the core of the green

economy, in which economic growth

and environmental responsibility work

hand in hand.

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CO2 emissions by sector

Percentage of iron & steel in global CO2 emissions is app. 6.5%

Source: IEA 2010 CO2 emissions from fuel combustion

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CO2 breakthrough programme

Tackling key programmes for reducing emissions for the industry

Provides forum for sharing BAT,BAP, mitigation techniques and

breakthrough programme

Work scope: focus on co-ordination of programmes ULCOS - Top Gas Recycling, Hisarna, Ulcoreduction, Ulcowin, Ulcolysis

Course 50 Programme, Reduce emissions, Capture CO2 from BF

POSCO – Finex emissions reduction, CCS, H2 steel making

Australian Programme – Biomass use, Heat recovery from Slag

CSC Taiwan – CO2 concentration and separation from flue gas and CCS

AISI – Hydrogen Flash Melting, Molten Oxide Electrolysis

CCS promotion – required technique to make sufficient reduction > 50%

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Innovative use of steel saves six times as much CO2 as is caused by the production of the steel

Net CO2 reduction potentialNet CO2 reduction potentialEmissions in thesteel production3 Emissions in thesteel production3

1.9

2.1

Mt

5 30100

9.2

1.0

11.2

5.0

14.2

29.5

Mt

9 111010

1.0

0.9

8.4

0.7

0.1

0.03

0.4

<0.1

Case studyCase study

1.3 : 1

14 : 1

1.1 : 1

Efficient fossil fuel PPs

Wind power plants

Other renewables2

Efficient transformers

Efficient e-motors

Weight reduction cars

Weight reduction trucks

Combined heat/power

Energyindustry

Traffic

HH, ind., CTS1

3

5

1

2

4

6

7

8

Ratio between CO2

reduction/emission4

Ratio between CO2

reduction/emission4

3 : 1

~ 400 : 1

32 : 1

9 : 1

∑~ 74 Mt ∑~ 12 Mt

~ 200 : 1

6 : 1

1.HH = households; CTS = commerce, trade, and service 2. Geothermal, biomass, hydro 3. CO2 expenditure for other materials not examined; values are rounded 4. Ratio relates exclusively to the emissions

Source: BCG analysis

Sustainable steel The amount of energy required to produce a tonne of steel has

been reduced by 50% in the last 30 years.

All steel created as long as 150 years ago can be recycled today and used in new products and applications.

By sector, global steel recovery rates for recycling are estimated at 85% for construction, 85% for automotive, 90% for machinery and 50% for electrical and domestic appliances. Leading to a global weighted average of over 70%.

Steel is the main material used in delivering renewable energy –solar, tidal and wind.

Nowadays, 97% of steel by-products can be re-used.

Water uptake and discharge are close to each other, with any small loss due to evaporation. Water recycled back into rivers and other sources is often cleaner than when extracted.

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