I would like to understand the basis of this opinion-
>Meanwhile, electric arc furnaces are unlikely to replace traditional blast furnaces in the coming decades, as most new steel production capacity will comprise blast furnaces.
as far as I can tell, the general trend is that steel manufacturers are moving to EAF method which doesn't use coke. If you don't believe me, look for top 10 steel makers ex-China and go through their earning calls and see how many of them are capex-ing on EAF. You will find many.
I would refer you to the first article on the metallurgical coal industry where I discuss the EAF risk. In summary, the largest metallurgical coal consuming/importing countries, India and China, while investing in EAF capacity, will continue to rely heavily on traditional blast furnaces for the coming decades. The same can be said of the Southeast Asian economies. Please refer to the chart showing expected steel production capacity by type (BF vs EAF) in the 'Electric Arc Furnaces' section of the article.
Seriously great, I agree with this
Can’t wait for part 3, this write up is amazing
Great article! Excited for pt. 3
The Whitehaven presentation coupled with chatgpt worked wonders to help my understanding of this. Great article, helped tremendously
I left a comment on Reddit
https://www.reddit.com/r/ValueInvesting/comments/1fryj8n/comment/lpq3oej/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
I would like to understand the basis of this opinion-
>Meanwhile, electric arc furnaces are unlikely to replace traditional blast furnaces in the coming decades, as most new steel production capacity will comprise blast furnaces.
as far as I can tell, the general trend is that steel manufacturers are moving to EAF method which doesn't use coke. If you don't believe me, look for top 10 steel makers ex-China and go through their earning calls and see how many of them are capex-ing on EAF. You will find many.
another tidbit from https://www.steel.org/steel-technology/steel-production/
> The use of EAFs has expanded and now accounts for over 70 percent of steel production in the United States
I would refer you to the first article on the metallurgical coal industry where I discuss the EAF risk. In summary, the largest metallurgical coal consuming/importing countries, India and China, while investing in EAF capacity, will continue to rely heavily on traditional blast furnaces for the coming decades. The same can be said of the Southeast Asian economies. Please refer to the chart showing expected steel production capacity by type (BF vs EAF) in the 'Electric Arc Furnaces' section of the article.
https://ideahive.substack.com/p/exploring-the-met-coal-industry-part