Steel
Steel in the Philippines
Quoting the president of the Philippine Iron & Steel Institute, the South East Asia Iron and Steel Institute highlighted that “the share of the infrastructure sector in the country's GDP has seen a significant increase, from 3-4% five years ago to 5.5-6% in 2023.”
But, the Philippines currently imports much of its steel due to the fact that “there are only two-three electric arc furnaces” and that “there is no blast furnace in the country.”
As the government is actively seeking to reduce dependence on imports, this could be another potential area for additional growth.
Three key takeaways
The steel production process inherently generates carbon emissions
The steel production process inherently generates carbon emissions
Steel generates more than three times the emissions of the aviation industry, over 45% more than the cement industry and 25% more than road freight (Steel is a major emitter – source).
Steel demand is expected to rise
Steel demand is expected to rise
Demand is expected to increase by 10-35% by 2050 compared to 2019 (Steel demand is expected to rise – source).
The steel market is relatively concentrated
The steel market is relatively concentrated
This offers opportunities for decarbonisation, as if the 20 largest steel companies decarbonise their plants, the potential total emissions of the steel industry could be reduced by up to a third (The steel market is relatively concentrated – source).
Decarbonising steel: Forging new paths together
While steel offers excellent formability and durability, there is a downside: the industry, from mining to production, has one of the highest carbon emission footprints – with steel accounting for around 10% of global carbon dioxide (CO2) emissions.
This report aims to reflect the views of the industry on how to accelerate decarbonisation and achieve net-zero emissions.
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