The spatial pattern of the iron and steel industry has undergone significant transformation over the years, shaped by various economic, technological, and geopolitical factors. Initially concentrated in Western Europe and North America due to proximity to raw materials and transportation networks, the industry has seen a shift towards emerging economies, particularly in Asia. China, with its abundant resources, low labor costs, and government support, has emerged as the world’s leading producer, driving a reconfiguration of the global spatial pattern. Additionally, advancements in transportation and communication technologies have facilitated the decentralization of production, allowing for more dispersed locations based on market demand and cost considerations. Moreover, environmental regulations and sustainability concerns have prompted some developed nations to scale down their production capacities or relocate to regions with laxer regulations. Overall, the changing spatial pattern of the iron and steel industry reflects the dynamic interplay of economic forces and technological advancements in a globalized world.
Tag: Factors responsible for the location of primary, secondary, and tertiary sector industries in various parts of the world (including India).
Decoding the Question:
- In Introduction, try to write a brief timeline in spatial pattern of the iron and steel industry.
- In Body, elaborate the change in the spatial pattern attributing to factors like modernization, change in transportation, etc.
- In Conclusion, mention the use of robots, drones and IoT in Iron and Steel industry and also certain challenges with solutions.
Answer:
The development of the iron and steel industry opened the doors for accelerated industrial growth in the world. Before the 19th century, the spatial pattern of the iron and steel industry was located near the availability of raw materials, power supply, and running water was readily available. Later the ideal location for the industry was near coal fields and close to canals and railways. After 1950, the iron and steel industry began to be located on large areas of flat land near seaports.
The change in the spatial pattern of the Iron and Steel industry in the world:
- Setting up Integrated Plants: The Indian iron and steel industry for example consist of large integrated steel plants, mini steel mills, secondary producers, rolling mills and ancillary industries. Because of the integration of many sectors, Integrated steel and Iron Plants are favored more. For Example: The Tata Iron and Steel plant lies very close to the Mumbai-Kolkata railway line and also near to Kolkata that is the nearest port to export steel materials.
- Transportation: Sites located at port areas may have been disadvantageous in earlier times because of their distance from the coalfields. However, the locational disadvantage has been nullified with the access to water transport, one of the relatively cheaper means of transport, being put to good use. For example, Japan’s steel capacity is concentrated near the major port cities of Himeji, Kobe-Osaka and Tokyo-Yokohama areas of South-Central Honshu.
- Environmental Norms: Another significant change that disables the establishment of Iron and Steel Industries in certain areas have been brought about by stringent Environmental norms. It is now difficult to obtain requisite environmental clearances. This negates the role of locational advantages.
- Raw Materials: earlier, Industries were located near Raw material availability. But now many countries import their raw materials. For Example, Japan, Korea India largely fulfills its coking coal requirements through imports from Australia. In fact, India’s The National Steel Policy, 2017, envisages that 65% of India’s coking coal requirements will be met through imports by 2030–31.
- Massive demands from other Industries. The other sector of industries is more dependent on steel and Iron Industry, so Iron and steel industries are set up near them. For example, The Indian automotive industry contributes to around 9% of steel demand in India.
Steel and iron industries are asset intensive. The iron and steel industry is going through an exciting transformation with the evolution of various emerging technologies such as robots, drones and IoT that provide business with valuable solutions. Though the steel industry in India and the rest of the world is grappling with certain challenges. A push from the government and the adoption of emerging technologies will enable us to achieve the goals sustainably.
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