The Rising Influence of Rising Affluence

[DewDiligence]

The long-term bear case for iron-ore based on reuse of scrap metal:

http://seekingalpha.com/article/913301-iron-ore-s-other-problem

The SA blogger presents what sounds like a compelling argument; however, he fails to mention that steel made from scrap rather than virgin iron ore is unsuitable for many applications.

Thus, while I agree with the blogger that the % of worldwide steel produced from scrap will gradually increase, I strongly disagree with the author’s contention that the increased use of scrap will end the growing demand for iron ore driven by The Global Demographic Tailwind. Comments welcome.