The steel industry plays a key role in the global economy as it is a fundamental sector for the manufacture of infrastructure and machinery, as well as a wide variety of consumer goods.
It also has an impact on the supply chain, affecting many economic sectors. Some of these sectors are:
- Employment and economic development: Steel production includes a value chain that ranges from the extraction of raw materials to the distribution of finished products. This value chain generates jobs in different stages, including miners, engineers of various branches, and construction workers. The rise of the steel industry is directly related to economic development since it promotes job creation and also stimulates the consumption of goods and services.
- Infrastructure and construction: The manufacture of infrastructure is closely linked to the demand for steel. The development of large projects such as the construction of buildings, roads, railways, and bridges, as well as other engineering works, require a large amount of steel. As industrialization and urbanization have increased in the world, there has been sustained and significant growth in the steel industry.
- Technological innovation: Being a traditional sector, the steel industry has also experienced significant technological advances. Research and development in metallurgy have led to the creation of stronger and lighter steel, driving innovation in the aeronautics, construction, and automotive industries, to name a few. In addition to improving efficiency, this advance also opens up new market opportunities.
- International trade: The production and trade of steel have a significant impact on the global economy. Countless countries export and import steel products to meet domestic and foreign demand. Tariffs, trade policies, and trade disputes directly affect the flow of steel in the international market, influencing prices and trade relations between countries.
Thus, the influence of the steel industry is multifaceted, ranging from job creation to infrastructure construction. Ultimately, steel plays a crucial role in global economic development.
