Re: CLF & scrap metal replacement of iron ore ....
My expectation that that there might be decreased use of iron ore as more scrap becomes available coupled with the planned increases in iron ore capacity by the big iron ore players (BHP, Vale, etc) have been major concerns when I look at CLF's long-range prospects, i.e in the 2015-2020 time frame.
That is why I was encouraged by the Investor Day Presentation highlighting the prospect that Cliff's Chrome Project will take up my feared slack in its iron ore demand in the 5-10 year time-frame (see #msg-78258185).
With respect to the scrap metal issue: William Boor (VP-Global Ferroalloys) addressed the increasing use of scrap metal in his 2012 Analyst and Investor Day presentation; a presentation that focused on Cliff's chromite project. See Dew's msg for slide set (#msg-78037739, slides 59-61). Boor argued that ferritic stainless steel production, which does not rely upon scrap metal, will roughly follow the stainless steel growth and demand despite the projected increased use of scrap metal. And, he argued that stainless steel demand will increase as developing economies seque from a focus upon infrastructure to a focus upon consumables.
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