Tag Archives: ore

Five Inconvenient Truths -Global steel industry

Interesting article, it discusses trade, overcapacity, raw materials, growth/slow down in building, and re-purposing of existing mills.  Maybe that is true. Read more here.

I must admit I am most intrigued by the existence of this group:

John Lichtenstein is a managing director for Accenture Strategy and the global lead of Accenture’s metals group.
The article did not discuss:  
  1. Changes in Environmental regulation. What if the total cost of an item was part of the selection process for materials (Aluminum vs. Steel)? What if LEED building specified LOCAL MATERIAL use or adding the effects of long distance shipping into the environmental degradation? What if shipping companies were forced to contribute money to the clean-up of the plastic gyre in the Pacific Ocean when shipping across the Pacific Ocean?  Unlikely, but possible and more sensible than carbon credits.
  2. Quality of the steel produced in China (I’d really like to know why the Bay Bridge is rusting with its low quality steel imported from China), coupled with the environmental devastation caused by converting raw materials to finished goods in a country that does not have strict environmental regulations and technologies.
  3. The main premise that global demand is slowing and will remain so, flies in the face of the greatest population being urban, and the population continues to expand. Housing in urban areas is made with steel, when it is high-density.

There is always room to learn more. I’ll be interested in Accenture’s next set of statistics.

There are many other Accenture articles; here is another from the same author.