Study

Stainless steel circular economy significantly reduces the risk of climate change in Thailand (FOTO) - Seite 2

dollars, according to calculations by Thai and German scientists. This
corresponds to the combined national average annual income of around 7.000
Thais.

The calculation is based on the "Scrap Bonus" indicator developed by the
Fraunhofer Center for International Management and Knowledge Economy IMW, which
was individually adapted to Thai conditions by the international research team
for the study. The indicator is calculated in two steps. In the first step, the
environmental impact avoided by using one ton of stainless steel scrap in steel
production is quantified. In the second step, various economic estimates and
price references from emissions trading systems are used to convert the avoided
environmental impact into Thai baht. In other words, a price is assigned to the
(avoided) pollution.

"This study shows that the smart use of recycling raw materials such as
stainless steel scrap and their use in the production of new products can make a
tangible contribution to the fight against climate change. Stainless steel scrap
is a particularly valuable secondary raw material due to its very high
recyclability. Stainless steel can be recycled without any loss of quality.
Worldwide, 95% of stainless steel is recycled at the end of its lifespan. 70% is
recycled as stainless steel. Scrap currently accounts for around 48% of raw
materials for stainless steel production worldwide. In Europe, leading stainless
steel producers go to the limits of what is technically feasible and use up to
95% secondary raw material blends for the production of new stainless steel,"
says Sirichai Tempoomsuk/CFO, Oryx Stainless (Thailand), Co., Ltd.

Stainless steel producer Southeast Asia: growth market

With a stainless steel production of 7.79 million tons in 2023, Asia (excluding
China and South Korea) is already a major player. The Southeast Asian steel
industry, including the stainless steel sector, is expected to increase its
production capacities significantly in the coming years, with countries such as
Malaysia and Indonesia building up millions of tons of new capacity. Thailand
produced around 366,000 tons of stainless steel in 2022 and is, simultaneously,
the second largest consumer of stainless steel in Southeast Asia.

Creating good framework conditions for recycling and thus climate protection

"The growth perspective in Southeast Asia and thus in Thailand underlines the
need for the smart use of our resources in view of the ongoing climate change
caused by the emission of greenhouse gases. This is where politics is needed,