Metalmorphosis: How decarbonisation is transforming the iron and...

Metalmorphosis: How decarbonisation is transforming the iron and steel industry | Wood Mackenzie




Key takeaways
1.DRI – and specifically demand for green DRI ‒ will be the primary beneficiary of steel's decarbonisation journey. In our base case, DRI's share of total metallics demand will rise from 6% currently to 13% by 2050, with production growing nearly five times faster than total metallics demand, to 320 Mt.
2. Japan and South Korea will largely import DRI from both the Middle East and Australia, as domestic costs sit at the higher end of the cost curve due to higher energy and raw-material costs. Steelmakers from the region have already announced DRI collaboration projects with Middle Eastern and Australian producers, to be shipped home for processing.
3. Europe, China, Japan and South Korea will be the epicentres of green DRI demand as they move to decarbonise. To achieve this, however, steelmakers in these markets will need to decide whether to make DRI domestically rather than import hot briquette iron from emerging supply hubs. The availability and cost of green hydrogen and renewable power, proximity to raw materials (DR pellets/high-grade iron ore), and carbon policies will dictate the outcome.
4. The Middle East and Australia are well positioned to capitalise on this opportunity and the project pipeline in both regions is growing fast"

MGT is in a fantastic posiition. .