The study, "Metalmorphosis: how decarbonization is transforming the iron and steel industry", clarifies the evolution of steel production methods and global trade networks.
EAF production, which is less carbon-intensive, contributes 28% to global steel production. A significant increase in this investment rate is projected for the coming years.
According to the report, demand for more environmentally friendly raw materials is expected to increase. With the changing development, new centers for the production of low-carbon iron and scrap will be created and an estimated investment of USD 80 billion is estimated to be required.
In the industry, there is increasing competition for new decarbonization projects in the Middle East and Australia.
The Wood Mackenzie report notes that new green DRI production facilities will be linked to the availability of low-carbon hydrogen.
While decarbonization of the steel industry may seem difficult, it can be minimized through studies and appropriate policies.
According to forecasts, green DRI imports will displace processed steel in markets struggling with high carbon costs, favoring high-emission producers such as China and India.
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