steel

Industry experts note rising demands for green steel

26/05/2025 by Derek

Steel is a widely used metal due to its strength, malleability, and recycling capabilities. It can be recycled repeatedly without losing its performance or quality. Every warehouse equipment manufacturer uses steel to make shelving, picking trolleys, packing tables and other equipment that warehouse operators rely on.

During a recent webinar, Sebastian Langendorf, chief executive of Meranti Green Steel, explained there is a worldwide growth in demand for green steel produced with fewer carbon emissions.

Regulations including the European Union’s Carbon Border Adjustment Mechanism (CBAM) and higher carbon taxes in Southeast Asia are driving steelmakers to reduce carbon emissions. There has also been a shift in the construction and car-making industries towards using more sustainable materials. Green steel made using a high proportion of recycled steel and iron made using cleaner fuels such as natural gas is more environmentally friendly.

Sebastian Langendorf confidently says that:

“The shift has started and green steel is here to stay.”

Direct Reduced Iron (DRI) steel is a way to manufacture steel using cleaner fuels with 67%-68% high grade iron ore. Sebastian Langendorf says that DRI Steel currently has a minor share of global steel production, but he predicts this will increase quickly.

Traditionally steel is made using blast furnaces powered by fossil fuels. These are being replaced in many areas by electric arc furnaces which can be powered by renewable energy sources. Electric furnaces are more efficient, can produce a wide range of steel grades and are more cost-effective than blast furnaces.

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