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Steel supply chain - challenges and solutions

The steel supply chain forms the basis of many industrial processes. From the procurement of raw materials to the delivery of the end product, it plays a crucial role in the global economy.

We present the various aspects of the steel supply chain. Including its economic importance as well as the challenges and solutions in terms of efficiency and sustainability.

 

 

Importance of the steel supply chain

Economic significance

The steel supply chain is of great importance to the economy. It secures millions of jobs and makes a significant contribution to gross domestic product (GDP). In Germany alone, over 80,000 people work directly in the steel industry. Around 4 million people are employed in steel-intensive sectors such as the automotive industry and mechanical engineering.

These industries depend on a reliable and efficient supply of steel in order to manufacture and distribute their products.

Significance for other industries

Steel is a key material in many branches of industry. In the automotive industry, it is used for the manufacture of car bodies, engines and chassis parts. In the construction industry, steel beams and reinforcements are indispensable. Mechanical engineering uses steel for the production of machines and tools.

Steel is important in all these areas due to its strength, mouldability and resistance to defined external influences and wear. In the field of lightweight construction, the higher and high-strength grades are also indispensable.

Components of the steel supply chain

1.

Procurement of raw materials

The steel supply chain begins with the procurement of raw materials. Iron ore is mined worldwide, often in regions outside Europe. The mining and transport of iron ore require considerable logistical measures and are heavily dependent on global market conditions. Fluctuating raw material prices and political uncertainties can affect the stability of the steel supply chain.

2.

Manufacturing and production

The next stage of the steel supply chain is steel production. Here, the iron ore is melted in blast furnaces and processed into crude steel. In future, this step will be replaced by hydrogen-based direct reduction processes. Irrespective of the production process, the crude steel produced is then further processed in rolling mills in order to obtain specific properties and shapes.

Finishing processes such as hot-dip galvanising improve the corrosion resistance and surface quality of the steel. Modern steel production techniques aim to minimise energy consumption and reduce CO2e emissions.

3.

Distribution and logistics

Distribution and logistics include the storage and transport of steel to various processing locations. Efficient warehousing systems and just-in-time deliveries are crucial in order to optimally support end customers' production processes. Modern logistics solutions use digital technologies and big data to optimise transport routes and avoid empty runs.

4.

End consumer and recycling

At the end of the steel supply chain are the end consumers who use the steel for their products. As soon as the products have reached the end of their service life, the steel recycling process comes into play. Steel is 100% recyclable and can be used again and again without any loss of quality.

Sustainability in the steel supply chain
 

Relevance and challenges

Sustainability is a key issue in the steel supply chain. Reducing CO2 emissions is one of the biggest challenges. Steel production is energy-intensive. It causes considerable greenhouse gas emissions.

In addition to the sustainability of our own production processes, emissions along the entire supply chain must also be taken into account. Low-emission production processes and pilot technologies such as Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU) are crucial to reducing the environmental impact.

Data-based transparency and digitalisation

Digital tools and artificial intelligence (AI) can help to measure and reduce emissions. By using data analysis and digital platforms, companies can gain transparent insights into their supply chains. Measures to reduce emissions can be derived from this.

Important measures to reduce emissions:

  • Use of digital tools to measure emissions
  • Integration of emissions data into ERP systems
  • Low-emission production processes
  • Carbon capture and storage (CCS)
  • Carbon Capture and Usage (CCU)

International standards and regulations

International standards and regulations play an important role in ensuring sustainable practices along the entire chain. These regulations, such as the German Supply Chain Duty of Care Act (LkSG) or the EU Corporate Sustainability Due Diligence Directive CSDDD, aim to protect human and labour rights and harmonise environmental standards globally. Companies must adhere to these regulations and ensure that their supply chains comply with international standards.

Why choose the EMW Steel Service Centre?

The EMW Steel Service Centre offers numerous advantages. As a plant-independent company, EMW guarantees flexibility and a wide variety of steel grades.

The company is characterised by customer-oriented services such as storage and just-in-time deliveries as well as strong partnerships. Long-term customer relationships and reliability are core values.

EMW is able to fulfil its customers' needs quickly and efficiently. Thanks to a storage area of 85,000 square metres and a constant availability of around 300,000 tonnes of sheet metal in various qualities.

Get in touch with us to find out more about our services. Request a quote now and let our experts advise you. EMW Steel Service Centre is at your side as a reliable partner.

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