The energy transition is gaining momentum and the demand for steel alloys is growing

It is estimated that in 2022, the global production of stainless steel melt will be about 62 million tons, which will increase to 90 million tons
by 2050.
China currently accounts for 60% of production and is home
to six of the world's top ten production companies.
At the same time, Indonesia and India are also expected to be the main drivers
of future growth.

In contrast, production in Europe, the Americas and Africa will be almost flat
over the next 30 years.

Stainless steel accounts for about 80% of the world's chromium consumption, 65-70% of nickel and 20-25%
of molybdenum.
All stainless steels contain chromium, and the use of nickel depends on the grade
.
In mature industries in Europe, the United States and Japan, more than 50% of the input material is scrap, which contains nickel and chromium, and is less expensive than pure metals
.
As a young industry, China has historically received less scrap, but will be able to use more
in the future.
In the long run, this will flatten the demand for chromium, nickel and molybdenum
.

Dale Hazelton, head of steel alloys and nickel markets at renowned research institute Wood Mackenzie, said: "We expect demand for stainless steel to grow by 4% this year to 55 million tonnes
.
Home appliances have contributed significantly to near-term demand, while the automotive industry is recovering but remains hampered by supply chain issues
.
Meanwhile, China's focus on infrastructure investment this year should boost the construction sector
.
”

Although China is a major producer of iron and steel alloys, it only accounts for 4% of the world's manganese ore production, and chrome ore production is insignificant
.
Therefore, there is a great dependence
on the import of these raw materials.
In terms of the outlook for bulk alloy metals, only manganese shows a significant shift in demand patterns in the long-term outlook, as this will support demand growth
in the battery segment.

Compared to other common cathode metals, a wider geographical distribution, a larger production scale and larger reserves provide better guarantees for the supply of manganese
.
In addition, production costs are an order of magnitude lower than cobalt and nickel, which also face ESG problems
.
As a result, battery usage of manganese will increase fivefold
between now and 2040.

The demand for your alloys will largely depend on China, where crude steel production will decline
.
Still, demand for your alloys will grow due to the more stringent technical requirements for steel, especially in construction—adding very small amounts of these metals can improve properties
such as strength and corrosion resistance.
At the same time, the potential of your alloys in lightweight steel, energy storage and EV batteries will allow them to play a role
in the energy transition.