Demand for green steel by car manufacturers is likely to impact the type of steel used in warehouse equipment production. While most European steel producers are developing more environmentally friendly green steel, it is still not being produced in large quantities, meaning that traditional tubular steel is still primarily used for warehouse equipment.
Accelerating green steel production beyond current pilot programs requires an increase in demand for it.
According to a report by the Brussels-based CEPS think tank titled “Can the Cars we Buy Drive Green Steel Production?”, car manufacturers and the construction industry will drive demand for green steel. The report defines green steel as
“steel produced in a way that is compatible with climate neutrality in the long run, i.e. close to zero GHG emissions”.
Green steel costs more than conventional steel, but the report suggests that the cost can easily be passed on to car buyers as cars are high-value items, whereas the price of green steel will not add a significant percentage to their cost. As green steel production increases, it is expected that costs will decrease, making it more cost-efficient for picking trolleys, storage racks, packing tables and other warehouse equipment to be made from green steel.
In general, consumers are demanding more environmentally friendly goods. This affects the whole supply chain, including warehouses and transport companies that rely on steel. Green steel is one way to reduce indirect carbon emissions in the warehouse, but it needs to cost less.
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