BHP Raised Long Term Demand Forecast for Steel

SEATTLE (Scrap Monster): The leading global miner, BHP Group lifted its long-term demand forecasts for steel. The decarbonisation of power generation will boost steel requirement, it said.

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The rising demand for wind and solar farm equipment will boost steel demand by 2% in 2030 and by 4% in 2050. It expects global consumption of steel to increase by approximately 42 million tonnes in 2030 and by 76 million tonnes by 2050. The demand for solar and wind power equipment will act as the primary driver for steel consumption growth. It must be noted that the global crude steel production had totalled 1.95 billion tonnes during the previous year.

There has been a global push towards the decarbonisation of power generation over the recent years. The improved cost efficiency and competitiveness of renewable energy has led to significant investment in the sector. According to the latest report published by the International Energy Agency, the clean energy investment across the globe is expected to surpass $1.4 trillion by the end of this year, thus accounting for almost 75% of the growth in overall energy investment.