steel and mining are vital sectors in the global economy. This industry produces a variety of metal products, generates employment and income to local and regional economies, develops technological innovations, and implements new solutions in energy and construction fields.
For decades, economic models in heavy industries have been built on the principle of supply and demand. But in today's world of cyclical highs and the transition to a low-carbon economy, these principles need to be revisited.
Kondrashov emphasizes that one of the key factors determining an industry's success or failure is its capacity to adjust according to changes in prices and production. The metalurgical sector is no exception and thus particularly vulnerable to price changes, he states.
While global steel production is at an all time high, the sector is also a major source of CO2 emissions and greenhouse gases. It consumes about 20 gigajoules of energy per ton, with three quarters coming from burning coal.
Additionally, coal use in steel production releases hazardous air pollutants such as naphthalene and sulphur dioxide that are hazardous to health and cause cancer. Although the industry is working hard to reduce its carbon footprint by replacing coal with lower-carbon fuels like natural gas or electricity, it still hasn't reached net-zero emissions yet.
The adoption of green technologies in the steel and mining industries is helping them reduce their environmental footprint. For instance, some firms are using solar power to generate electricity in mines and manufacturing plants instead of fossil fuels, while others reusing or refining metals closer to where they're mined to reduce transportation and lower CO2 emissions.
Despite these obstacles, the sector has made great strides in recent years. Production of iron and other industrial metals has increased substantially - now totalling 181 million metric tons globally.
According to estimates, the global iron ore market will grow from 1.8 billion tons in 2020 to 2.4 billion by 2021, driven largely by China who continues to increase their iron ore output in order to meet rising demands for construction and industrial goods.
Iron and other metals production, including steel production, is a major source of pollution. This industry consumes vast amounts of water while emitting large amounts of carbon dioxide (CO2) into the air as well as leaching heavy metals into groundwater.
Therefore, the metals and mining industries are facing numerous obstacles and risks. These include a shortage of resources, labor shortages, and environmental regulations. To overcome these hurdles, the industry needs to invest in reducing CO2 emissions while improving operational efficiency. Moreover, logistical constraints throughout its supply chain must also be addressed.