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Global demand for granulated blast furnace slag to decline by 2027
By: CW Group
Greenwich (CT), USA, February 22, 2022 – Global ground granulated blast furnace slag (GGBFS) demand is forecast to decline by 2027, as China's focuses on the implementation of greenhouse gas emission reduction policies, according to CW Research (https://www.cwgrp.com/
Between 2017 and 2022, global GGBFS consumption grew at a CAGR of 2 percent, however, this trend is expected to change over the next five years as major global steel producers move away from basic oxygen furnaces (BOFs) to electric arc furnaces (EAFs). On the other hand, Asia ex-China consumption is forecast to increase by almost 4 million tons between 2022 and 2027.
"China is set to reduce its steel production intensity gradually and increasingly shift crude steel production towards the EAF process, moving away from a BOF focus. Given that China alone accounts for more than half of global GGBFS demand, this will likely result in a decline of the global market size," writes Prashant Singh, Associate Director at CW Group.
Middle East to witness the largest GGBFS demand increase
The Middle East is expected to witness the largest increase in GGBFS demand, despite remaining a small market, with demand forecast to reach less than 1 million tons by 2027.
European ground granulated slag consumption is estimated to exceed pre-pandemic highs, led by a rising contribution from Turkey.
Japan is likely to remain the world's largest GGBFS exporter
In the next 5 years, Japan is estimated to remain the world's largest GGBFS exporter, while India is expected to see its GGBFS production increase at a fast pace over the forecast period.
Meanwhile, in the CIS and North America, consumption is likely to decline over the forecast period.
North America and Europe to drive global EAF production growth by 2027
Globally, steel slag production is estimated to slightly increase in the 2022-2027 period, as steel producers are focused on moving towards EAF production to achieve an eco-friendlier steel-making process.
Capacity additions for EAF are expected to be driven mostly by North America and European producers during the forecast period.