Commodities of The Future: What Is Going to Change?

Acceleration of sustainability, decarbonization and significant development of some leading companies caused rapid changes in the commodity industry.

Some commodities, called “commodities of the future,” will have a strong demand growth in 20 years worldwide. They are copper, nickel, aluminum, lithium, cobalt, tin, rare piles of earth, metal scrap, and green steel.

As productivity increases, the pace of digital transformation will mainly affect the intensity of energy use. Also, it will affect the direct demand for metals (such as tin and copper) used in digital product manufacturing.

In the next 10 to 20 years, the decarbonization policy may increase exponentially. It will strengthen the demand for high-quality green steel.

The acceleration of the green and digital transition in the next few years will support various commodities. These commodities might be copper for the green growth, nickel, lithium, and cobalt for the green change. Also, electric vehicle batteries, digitalization, and consumer demand. Tin and aluminum are green transitions.

The mining and refining industries for “traditional” base metals (such as copper, nickel, tin, and aluminum) are very mature. However, the mining industry for lithium and cobalt will develop rapidly in the next few years. These markets will mature day by day. In the next few years, the demand for scrap metal is also very bright. The use of scrap steel and electric arc furnaces that need to be recycled will significantly increase.

Digitalization and modernization plans in the infrastructure sector in the manufacturing industry will require high-quality, lightweight, and low-carbon steel.

Demand for steel scrap will also be strong out to 2030 as the less- polluting EAF’s capacity will rise significantly.