Iron and Steel: Essential Commodity for the World of the Future Continues to Be

Iron-Steel: Key Commodity for the World of the Future Continues to Happen

Increased competition and rising production costs as of 2022 with the impact of the pandemic and fluctuating demand, the iron and steel industry has been facing a series of challenges. signals a return to normalcy in this year. Despite these challenges, developing countries the iron and steel market continued to grow, driven by increasing demand for infrastructure and consumer goods. continues.
China accounts for about half of the world's steel production, while the other major Japan, the United States, India and Russia are the leading producers. takes place.
According to data from the World Steel Association, at the end of a years-long growth streak, in 2022 global crude steel production decreased by 4.3% year-on-year to 1.83 billion tons. realized. Decline in production figures in 8 of the world's 10 largest steel producers while in Turkey it decreased by 12.9% due to the increase in production costs. took place.
In terms of demand, the construction sector is the largest, accounting for more than half of global demand. iron and steel consumers. This demand is driven by infrastructure, especially in developing countries. the growing need to develop new vehicles. In addition, the tools can be used in large quantities steel component, the automotive industry has also been instrumental in driving demand for iron and steel. plays an important role. The defense industry and the transportation sector also use iron and steel products intensively. is one of the consuming sectors.
The price of scrap and iron ore used in steel production, global economic conditions, supply and demand dynamics and geopolitical tensions. This Therefore, there are serious fluctuations in the unit ton prices of iron and steel products and Their reflections on final product prices can also be significant.
For example, the price of iron ore, which was around 85 dollars per ton at the beginning of the pandemic, has only It has risen to 215 dollars within a year.
As a result, the iron and steel industry is facing increasing demand for infrastructure and consumer goods. because it continues to be a vital and growing sector of the global economy. The sector Despite the challenges it faces, strong demand is expected to continue in the coming years. expected. In our country, both infrastructure, construction and energy sectors investments, and the major investments in 11 provinces that took place in Kahramanmaraş in February 2023. Considering the needs created by the earthquake disaster that caused damage, iron and steel products are expected to remain important.