2020 will be a milestone for the metals and mining industry

It looks like 2020 will be a year of profound change for metallurgists and miners. The energy transition is the dominant driver of change and the industry is at the forefront of this story. To successfully reduce global fossil fuel consumption, the sector must be able to ensure an adequate and timely supply of critical commodities while delivering the financial performance and ESG-related results that its stakeholders demand. And could this be a year where the carbon footprint on metal is screened as closely as the environmental footprint of plastic?

The coming year will bring other challenges as well - and, of course, their nature and magnitude will vary from country to country in metals and mining. Could iron ore prices remain high and drive up the cost of steel production? Could game-changing technological changes change the dynamics of the coal market?

The most important trends to watch out for this year

Steel
China's steel demand is likely to finally peak in 2020. Since China is responsible for half of the world's steel demand, we will closely monitor the government's policy on whether incentives for intensive steel construction will be used to meet GDP targets.

Attention should also be paid to the potential impact of the European Green Deal, M&A activity and global potential changes.

Iron Ore
2019 was full of surprises for iron ore, so what will 2020 bring? Demand growth is likely to slow down along with falling prices.

Much depends on Vale's recovery this year to a potential supply surprise in India.

Coal
The offshore thermal coal market is entering a year struggling with cheap LNG in the Atlantic and a rapidly growing supply in the Pacific. Global economic performance is weak, and a warm winter in the northern hemisphere threatens first quarter demand.

Metallurgical coal
Coal suppliers continue to face environmental challenges and climate change in capital, and growth opportunities still exist. Several potentially game-changing technological developments could make the market particularly interesting.