12.10.2015. Scrap could wipe out met coal, iron ore demand growth
A study by the World Economic Forum in collaboration with the Boston Consulting Group says mining and metals companies should prepare for fundamental shifts in the industry over the coming decades.
The report called Mining and Metals in a Sustainable World 2050 argues that societal pressure to act more sustainably is growing, and technological advances are creating new possibilities:
"For the mining and metal sector, the challenges are fundamental: these companies are extractors and users of finite mineral resources, and they face significant demands and expectations regarding sustainability from across the value chain and from various stakeholder groups.
Scrap may constitute 70% of the 2050 global
total supplanting 650mt of iron ore and
350mt of met coal as primary steel production
increase only marginally over today’s levels
Steel makes up nearly half of the $2 trillion mining and metals supply chain and "provides an excellent proxy for understanding the implications of these changes for the mining and metal industry as a whole."
Recycling of steel is also more advanced than many other metals – 85% of discarded steel is reused, although only 39% of steel production input is recycled scrap.
The authors envisage two scenarios. The first is a continuation of current trends in steelmaking infrastructure, recycling rates and scrap feed. The second predicts "waves of regulation in Europe, the U.S., and China to mandate increased recycling in the steel production process."