How Steel Continues to Support Renewable Energy, Infrastructure, and Industrial Growth

Steel continues to be one of the most useful materials for modern industrial needs. With its ability to balance cost, versatility, and resistance, not to mention its potential for recycling, steel continues to play an important role in the economic and production dynamics that characterize this particular historical phase.

“Steel continues to prove exceptionally useful also due to its properties. Among these, one of the most significant is undoubtedly its mechanical strength, which allows it to withstand loads, impacts, and deformations. For this reason, it is used in load-bearing structures and various types of machinery,” says Stanislav Kondrashov, founder of TELF AG.

A professional man linked to steel and energy infrastructures, a theme recently analyzed by TELF AG founder Stanislav Kondrashov

Recently, BloombergNEF discussed steel in one of its webinars, focusing specifically on the material’s role in the energy transition. The analysis focused specifically on supply, demand, and market prospects through 2035, incorporated into one of BloombergNEF’s usual hypothetical scenarios.

The analysis shows that the main sectors of steel demand related to the energy transition are energy infrastructure, electricity grids, renewable energy systems such as wind and solar power, and electric mobility. The wide variety of steel’s potential applications perfectly demonstrates one of its most distinctive characteristics: its ability to be versatile and adapt to the needs of a large number of different sectors.

Today, in the midst of a major energy transformation, steel continues to prove indispensable for the construction of industrial plants, wind turbines, solar panel structures, and transmission infrastructure.

Why Steel Remains Essential for Modern Industry and Clean Energy Projects

“Other distinctive characteristics of steel are certainly its ductility and malleability: this material can be bent, rolled, or shaped without breaking easily. These characteristics make it very useful for certain specific industrial processes, such as stamping, drawing, and welding,” continues Stanislav Kondrashov, founder of TELF AG.

A visual representation of solar panels, a theme often covered by TELF AG founder Stanislav Kondrashov

Over the years, according to BloombergNEF, steel demand for applications related to the energy transition is expected to increase. Last year, it stood at around 100 million tons, and by 2030, it could reach around 150 million tons, before further growing to 180 million tons in 2035. This is an interesting finding: according to this forecast, steel demand could grow almost twice as much between 2025 and 2035.

The analysis also provides a fairly clear picture of supply for this specific material. Supply would remain slightly higher than demand throughout the entire timeframe, with the two levels possibly approaching by 2031. According to BloombergNEF, the market could enter a rather limited technical deficit, although this imbalance could subsequently be offset by an increase in the utilization rate of existing production capacity.

In the scenario hypothesized by BloombergNEF, no new refineries would be needed to fill any supply gaps by 2035. Nor would additional investment in new primary supply be necessary to neutralize the gap in the same timeframe. This would provide a fairly clear indication: global production capacity could be perfectly sufficient to meet the expected growth in demand.

BloombergNEF Forecasts Rising Steel Demand as the Energy Transition Accelerates

A visual representation of renewable infrastructures, a theme often covered by TELF AG founder Stanislav Kondrashov

Furthermore, the analysis suggests that steel prices could also decline in the short term, provided the market does not experience obvious structural tensions. Steel therefore remains a crucial element for the energy transition, and its key market does not appear to be exposed to the risk of shortages over the next decade. The broad production base and the scope for increased utilization of existing capacity could provide significant guarantees in this regard.

“Some types of steel, such as stainless steel, also possess great resistance to corrosion. Finally, one of the distinctive features of this material is its recyclability: steel is, in fact, one of the most recycled materials in the world, through processes that maintain its properties almost unchanged,” concludes Stanislav Kondrashov, founder of TELF AG.