Cost+Effieciency Need of the Hour

Conventionally, the economic impact of an industry is measured by its contribution to GDP (Gross Domestic Product), i.e. gross value addition from the industry - the difference between the value of output and intermediate inputs.

- Tamajit Pain

Another important indicator is the number of people working in the industry. These indicators help to describe the direct impact.

But the true magnitude of the steel industry’s impact on society and the economy can’t be measured without taking into consideration the impact it has on its value chain from the perspective of both input suppliers and output customers. This is enormous when we consider how important steel is to so many industries.

The supply chain impact is called ‘indirect impact’. In the case of suppliers, it refers to the impact of the steel industry on the economy due to its purchases of inputs from not only raw materials but also manufactured goods, energy, and services. Downstream, a wide range of steel-using sectors, such as construction, automotive, mechanical machinery, transport, energy, and others depend on steel for their production activities.

The overall impact of the steel industry is $2.9 trillion worth of value-added, and creation of 96 million jobs globally, according to a World Steel Association study.

Meanwhile, the steel industry is taking to optimise resource efficiency and advance sustainable consumption and production.

In 2017, 96.3 percent of all steel industry raw materials were converted into useful materials: 63.6 percent were converted into steel products and 32.7 percent into coproducts.

These co-products are used in the industry itself or in other sectors. For example, slag is used to produce cement, process gases are used in heating, etc. Process gases now have the potential to be converted into fuel for aircrafts or other transport means. These are just a few of the many applications of steel industry co-products, according to another study. Thus the steel industry is moving towards the goal of 100 percent resource efficiency.