Steel Markets

Associations Trade Letters in Automotive Materials Debate
Written by Tim Triplett
January 20, 2020
Steel and aluminum producers agree that lighter, more fuel-efficient vehicles are better for the environment—but that’s where the consensus ends. In letters to the editor published recently by Automotive News, the American Iron and Steel Institute and the Aluminum Association wielded dueling studies to support their claims that theirs is the material of choice to reduce vehicle emissions and increase safety.
“It’s good for the auto industry, good for consumers and good for our planet to see increasing awareness throughout the automotive supply chain, where a true accounting of vehicles’ impact on the environment includes the total life cycle, including materials,” wrote Jody Hall, vice president of the automotive program at AISI in her letter. “For too long, the regulator-driven focus on fuel economy has encouraged an ‘out of sight, out of mind’ dismissal of major environmental costs that must be factored into any serious discussion on sustainability.” The steel industry maintains that aluminum’s weight advantage over steel is more than outweighed by the environmental impact of generating all the electricity required to produce aluminum.
“If the facts are not on your side, pound the table and yell like hell — an old saying that evokes the steel industry’s latest environmental attack against the aluminum industry,” responded Lauren Wilk, vice president of policy and international trade for the Aluminum Association, in her letter. “When the largest material by volume regularly focuses attention on the second most used material, it suggests grave concern. Perhaps it is because, as DuckerFrontier recently confirmed again, aluminum is the fastest-growing automotive material, gaining market share from steel, year over year.”
Both industries make a strong case for their product. Experts with no skin in the game say aluminum and advanced high-strength steel will both help automakers produce vehicles that do less damage to the environment. Market share may shift to a degree from one material to the other (depending on which study one believes), but ultimately, it’s the planet that will be the winner.

Tim Triplett
Read more from Tim TriplettLatest in Steel Markets

Hot-rolled sources say demand continues to dwindle, prices feel arbitrary
Genuine demand, they stated, will return when the market feels stable again.

FabArc Steel Supply completes projects in Mississippi, Georgia
FabArc Steel Supply announced this week the completion of two large-scale projects in Georgia and Mississippi.

Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.

Worldsteel: Global steel demand flat, but modest rebound forecast for 2026
The World Steel Association (worldsteel) Short Range Outlook for global steel demand predicts that 2025’s steel demand will clock in at the same level as in 2024. In its October report, the Brussels-based association stated that this year’s steel demand will reach ~1,750 million metric tons (mt). The organization forecasts a 1.3% demand rebound in 2026, pushing […]

CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...