Trends regarding the use of steel in the automotive industry

For a long time, steel was the material used in the automotive industry, worldwide. The use of steel has allowed car manufacturers to achieve the desired standards of strength and safety for their vehicles. All at relatively low costs compared to other materials. However, considering the increasingly strict regulations regarding carbon emissions and fuel efficiency, reducing the weight of automobiles has become an extremely important element for the automotive field. Steel faces increasing competition from aluminum and other materials. Because car manufacturers want to reduce the weight of their vehicles in order to comply with these regulations.

The steel used in the automotive industry

This article analyzes how steel was used in the automotive industry. Also, the change in regulations, the implications for steel producers and the measures adopted by these companies to face these challenges.

According to the estimates of the World Steel Association, the automotive sector represents approximately 12% of the total consumption of steel, worldwide. ArcelorMittal is one of the world’s leading producers of automotive steel. Representing approximately 16.7% of the automotive sheet steel market in 2014. Steel is the dominant material in the automotive industry, weighing approximately 60% of the weight of an average automobile. However, the share of steel in the manufacture of automobiles is likely to decrease. Because of the strict regulations regarding car emissions and fuel efficiency.

In order to address environmental issues, both North American and European governments have set specific goals for fuel efficiency and emissions reduction. For example, the US government aims to improve fuel efficiency. From 27.5 miles per gallon in 2012 to 54.4 miles per gallon in 2025. In the EU, the objective is to reduce average emissions from 130 grams of carbon dioxide per kilometer in 2015. Up to 95 grams of carbon dioxide per kilometer until 2021. To make cars more fuel efficient. Manufacturers are looking for ways to make cars lighter. This allows other materials, such as aluminum, to take over steel’s market share.

Much lighter materials used to make cars

Composite plastics and aluminum began to be used to make lighter vehicles. An example of this is the F-150 truck from Ford, aluminum weighing almost 25% of its weight. Although this is a specific example, it is also an indicator of trends in the field. Since aluminum is a lighter metal than steel, the increase in terms of volume of aluminum used in a car is natural in the new conditions. The share of aluminum volume in automobiles is expected to increase from 6.6% in 2015 to 26.6% in 2025.

Considering the favorable environmental regulations, the field of application of aluminum as a material used in the manufacture of automobiles will certainly increase. However, aluminum is a much more expensive metal than steel. Similarly, other lighter materials such as manganese and composite plastics are even more expensive. Thus, there is a compromise between reducing weight and increasing costs. It is an opportunity for new materials that balance low cost with light weight. Steel producers are trying to exploit their high strength steel class.

Major steel companies such as ArcelorMittal and US Steel are investing heavily to produce advanced high-strength steels in order to maintain steel’s position as the material of choice for the automotive industry. These steels offer significant weight reductions compared to traditional steels of similar strength.

Article source: http://www.forbes.com/sites/greatspeculations/2015/05/20/trends-in-steel-usage-in-the-automotive-industry/2/