DERICHEBOURG - Universal registration document 2018-2019
1
CSR report (serving as statement of extra-financial performance) Overview of businesses and business model
The following factors affect the ferrous scrap metal market: Global steel production p
In millions of tonnes
1,808
1,730
1,800
100%
1,649 1,669 1,619 1,625
90%
1,537 1,559
1,600
1,432
80%
1,400
880
1,237
860
70%
1,200
827 846 815 818
835 828
60%
793
1,000
50% 49% 50% 50% 50% 51%
660
50%
45% 46% 47%
800
47%
40%
600
30%
400
20%
577 639 702 731 822 822 804 808 870 928
200
10%
0
0%
2009 2010 2011 2012 2013 2014 2015 2016
2017
2018
China as a % of total
Rest of world
China
Source: Worldsteel Association.
Global steel production has grown 1.9% per year over the last five years. China alone accounts for 51% of global production. Distribution of steel production between blast furnaces and electric p steel mills
As you can see in the previous graph, the share of steel from electric steel mills tends to increase from year to year, on a regular basis in countries other than China, and more recently in China. The competitive advantages of steel from electric mills are as follows: less investment; ● increased flexibility of use, with the ability to stop and restart ● production; very clear environmental benefit (fewer greenhouse gas emissions ● per ton produced with a ratio of 1 to 2.3) and energy benefit (less energy consumed per ton produced) advantage compared to blast furnaces, especially in countries where the nuclear share of the energy mix is high; local supply; ● ease of access to steel production for developing countries thanks to ● lower investment. However, blast furnaces generally have lower production costs per ton. In China, 95% of steel was produced in blast furnaces. To reduce pollution, it decided to encourage steel production from electric mills in the coming years, by setting up its own ferrous scrap metal collection network, opening new electric steel mills and closing old blast furnaces.
Blast furnaces consume iron ore, coke, and a small proportion of ferrous metals (10-15%), which reduces greenhouse gas emissions. Electric steel mills consume ferrous metals almost exclusively. In theory, both types of mills can produce any type of steel. In practice, steel from electric mills is used to produce long steel and reinforcing bars. Coils are made mostly at blast furnaces.
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
1998
1996
1992
2001
1999
1997
1995
1993
1991
2004
2002
2000
1994
2007
2005
1990
2003
2008
2006
2009
2012
2010
2015
2013
2011
2016
2014
2017
2018
Share of EAF China Share of EAF rest of world
Source: Worldsteel Association.
DERICHEBOURG p 2018/2019 Universal Registration Document 15
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