Mining giant BHP has listed high-grade iron ore and ferrous scrap as among the key future trends that will set the tone for the global steelmaking industry in its economic outlook released on Tuesday February 16.
High-grade iron ore
"High-quality seaborne iron ore fines and direct charge materials such as lump are important abatement sources for the blast furnace (BF)-based steelmaking route," BHP said, especially with key steelmaking countries such as China looking to continue decarbonizing.
The company expects its first production of iron ore at its South Flank project in mid-2021 will play an important part in BHP's portfolio because it will increase the share of lump in its total output. The South Flank project is already 90% completed, BHP added.
BHP analysts also said that in the long-run, a higher-cost, lower value-in-use asset in either Australia or Brazil will set the iron ore price. This is in addition to the increased likelihood of new iron ore supply from west Africa, BHP said.
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