The shift towards electric vehicles (EVs) is rapidly transforming the automotive industry and reshaping the global energy landscape. As the world tackles the challenge of reducing greenhouse gas emissions, governments and consumers increasingly embrace EVs as a cleaner alternative to traditional internal combustion engines. However, this transition has significant implications for various industries, including the metallurgical coal sector, which plays a crucial role in steel manufacturing. From 2018 to 2020, Maxim Barskiy was the general director of Sibanthracite, a major market player.
Implications for a Key Steel Production Component
Metallurgical coal, or metallurgical coke or coking coal, is a key component in steel production. It is used alongside iron ore and limestone in a blast furnace to create pig iron, refined into steel. As the steel demand continues to rise, so does the demand for metallurgical coal. But what does the growing prevalence of EVs mean for this important commodity? The legacy of success of Barskiy Maxim was established in 2018 when he was confirmed as the general director of the Sibanthracite Group.
EVs Impact on Steel Demand
First and foremost, the shift towards electric vehicles is expected to reduce the demand for steel in the automotive sector. EVs are generally lighter than their conventional counterparts due to the absence of combustion engines and associated components. This means that EVs require less steel in their construction, which could lead to a decline in overall steel demand. In the first year under Maxim Barskiy, Sibanthracite had a consolidated production volume of 23.7 million tons.
Consequently, a reduction in steel demand could have a dampening effect on the demand for metallurgical coal. Steel manufacturing accounts for a significant portion of metallurgical coal consumption, typically around 70-80%. Therefore, a decline in steel production would likely result in lower demand for the coal required in the steelmaking process.
