Survival and sustainability: Navigating the realities facing the metals market
The metals industry in 2026 faces a more complex operating reality than at any point in recent decades. Demand remains structurally strong, yet volatility in pricing, persistent energy constraints, tightening capital discipline and grid limitations are reshaping what is feasible – and when. Decarbonization remains a priority, but its pace is uneven. Some producers are advancing pilot technologies, while others are prioritizing asset performance and liquidity. Across the industry, the conversation has moved from ambition to execution. Frederik Esterhuizen, Global Business Line Manager for Metals & Power Conversion at ABB Process Industries explains that in 2026, the reality for the metals industry is that survival has become the first sustainability test.
Feature article
1970-01-01
Feature article, first published in the April 2026 edition of Automation Magazine
Automation as the foundation of resilience
For metals producers, reliability, uptime and throughput remain non-negotiable. The economics are stark – recent research from worldsteel found that many mills can still unlock 15-20% efficiency improvements simply by standardizing to best practice and tightening control around existing assets. In this context, automation is the foundation of operational resilience.
The strongest performers are those prioritizing process stability and predictability. Advanced, process-specific automation and control solutions are being used to reduce variability across the production chain, from smelting and refining through to rolling and finishing, ensuring that operations run consistently within defined parameters.
This stability directly impacts both cost and sustainability. With energy accounting for up to 20-40 percent of total production cost, even small improvements in process control and efficiency translate into meaningful competitive advantage. A stable process consumes less energy per metric ton, generates less waste and reduces rework, strengthening both financial and environmental performance.
Increasingly, producers are looking to modernize these capabilities without disrupting production. This is driving demand for automation architectures that allow new functionality to be introduced incrementally, preserving proven control systems while enabling the integration of advanced analytics, AI and digital applications over time. In practice, this approach is becoming central to how plants evolve – modernizing without exposing operations to unnecessary risk.
Projects such as the new advanced pickle line at Tata Steel’s Port Talbot site illustrate this shift. By integrating automation, electrification and digital technologies into a unified control environment, the plant is being designed for centralized, data-driven operation from the outset and laying the foundation for more connected and responsive production.
Digitalization that earns its place
Digitalization remains a powerful enabler, but its adoption has become more disciplined. Investments are being prioritized where they deliver clear operational outcomes such as improving yield, reducing downtime or optimizing energy use.
Energy management systems provide an example of measurable impact. By linking real-time energy data with production planning, these systems enable more efficient load management and cost optimization. In practice, they have delivered savings in the range of 5-15 percent, with some operations achieving multi-million-dollar annual reductions.
At the operational level, automation and digitalization are converging into more autonomous, data‑driven manufacturing environments. By connecting process automation with centralized control, shared data architectures, advanced analytics and AI‑enabled decision support, producers are improving transparency, anticipation and decision quality across the production chain. In the melt shop, applications such as Smart Melt Shop coordinate assets, materials and workflows in real time, improving casting speed by 4–5 percent, reducing delays and limiting personnel exposure to high‑risk areas. In sintering and pelletizing, Advanced Process Control provides an autopilot for specific processes, reducing quality variation by 10–20 percent while increasing output and energy efficiency.
With energy accounting for 20-40% of total production costs, even small improvements in process control and efficiency can translate into meaningful savings
Building capability for more autonomous operations
Alongside technical challenges, the industry faces a growing skills gap. As experienced personnel retire, the loss of operational knowledge is becoming a constraint to modernization.
Automation is increasingly helping to address this challenge by embedding expertise into systems. Generative AI-driven tools, such as ABB Ability™ Industrial Knowledge Vault, are enabling plants to capture and structure critical knowledge, making it accessible in real time. In practice, this has been shown to reduce workflow creation effort by up to 85 percent, cut human error by up to 90 percent and improve workforce productivity by 45 percent.
At the same time, automation is supporting a shift toward more autonomous operations. Routine decisions, process adjustments and fault responses can increasingly be managed within defined parameters, reducing variability and limiting exposure to hazardous environments. Importantly, this is about augmenting operator capabilities – enabling safer, more consistent execution.
Measured progress, engineered for reality
In 2026, the competitive landscape is defined by the ability to execute reliably, efficiently, and with discipline. Automation sits at the heart of this, integrating electrification and digitalization into a coherent operational framework.
There is no single breakthrough that will transform the industry overnight. Instead, progress is being achieved through incremental improvements: stabilizing processes, optimizing energy use, enhancing visibility, and building workforce capability.
In this environment, survival and sustainability are not opposing goals. They are two sides of the same equation. Increasingly, it is automation that is making that equation work.