Demand for High strength steel exceeds all forecasts

SPOKANE (Scrap Monster): According to the Steel Market Development Institute (SMDI), the use of advanced high-strength steel (AHSS) by automotive industry has exceeded earlier forecasts during the period of past three years.

The study conducted by Ducker Worlwide shows that AHSS content in automobiles grew to 254 pounds per vehicle in 2014, significantly higher than forecasts. Earlier estimates in 2010 had suggested 232 pounds per vehicle AHSS content for 2014. At the same time, aluminum usage by vehicles has dropped when matched with earlier forecasts. The higher than expected use of AHSS is a clear indicator of the high value of steel, SMDI noted.

“Our work with automakers on vehicles still in design is helping to maximize the use of today’s steels while introducing the steels of tomorrow, a strong indicator these trends will continue,” said Lawrence W. Kavanagh, president of SMDI. “Mass reduction with steel continues to exceed expectations and offers automakers design solutions without the major manufacturing cost penalties associated with alternative materials.”

AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 19 member companies, including integrated and electric furnace steelmakers, and approximately 124 associate members who are suppliers to or customers of the steel industry.

SMDI, a business unit of AISI, increases and defends the use of steel by developing innovative materials, applications and, in general, making steel the highest value material in the automotive, construction and packaging markets.