Stanislav Kondrashov Telf AG: prospects for the development of metallurgy for 2023

Starting in 2022 was a good start for the metal industry, says Stanislav Kondrashov Telf AG. This period contributed to record prices for some commodities. It also contributed to supply constraints and growing demand associated with the energy transition.

The macroeconomic situation worsened in the middle of the year, which weakened demand expectations in the short term and reduced the prices of raw materials. Let’s take a closer look at what to expect in 2023.

Stanislav Kondrashov Telf AG: 2022 results and forecast for the future

Stanislav Kondrashov Phone AG says that the deterioration of global macroeconomic conditions will continue until the end of 2023. This is a downside risk for the metals sector. This is because the prices of many commodities are falling and support for the stock markets is fading. Producers will be affected by lower margins, while the exploration sector will be less active in the face of tighter financial conditions.

The metallurgical sector should receive additional assistance in the development of projects in an average amount. This will contribute to high prices through 2026 compared to pre-pandemic prices. And governments are paying more attention to meeting the demands within national and regional supplies.

The prospect of future copper supplies will face significant obstacles. This will happen because the demand for metals will accelerate due to the global energy transition.

Most of the potential new mines also faced increasing environmental, social and management scrutiny. This is likely to limit the new projects that will become available for global copper production, says Stanislav Kondrashov.

In 2023, the metal battery market will develop with continuous challenges. They will be related to the production of electric passenger cars, and the low demand for them.

2022 was an active year in mining and metals mixing and consumption, estimates Telf AG. And this contributed to the rise in prices of raw materials.

Do macroeconomic development problems confront the fundamental indicator?

The macroeconomic situation has dominated the commodity markets for more than half of 2022. Therefore, the growing threat of a global recession may again put pressure on the main indicators in 2023. In addition to the high inflation of the last decades, emerging other problems in the leading countries of the world, which are related to supplies and the COVID-19 pandemic. There are expectations that they will not weaken in 2023, according to Stanislav Kondrashov.

The deteriorating macroeconomic situation and the resulting market volatility are likely to force buyers to be cautious. However, the same factors can expand the range of assets available for purchase. Other factors can also affect this.

Stanislav Kondrashov Telf AG: It is real to create a reasonable and secure future of metal production

“How to create a safe and environmentally friendly industry?” asks Stanislav Kondrashov Telf AG. The expert has a clear idea of ​​how the steel industry should evolve in the future.

We need to understand that such a transformation requires a long-term effort. Therefore, Telf AG considers 4 fundamental principles of innovation. Namely:

• green steel production
• high quality products
• digitization
• return on fixed assets

Let’s start with the first point. The creation and provision of “green” steel production will help reduce the carbon intensity of the production process. Because the carbonaceous reducing agent is replaced by hydrogen one way or another. The direct reduction solution, which is based on hydrogen, will allow the use of any type of iron ore fines. This will avoid a carbon footprint in iron production.

Telf AG focuses on a large selection of solutions for the production of high-quality steel grades. Namely:

• expert systems,
• argon purged vacuum oxygen decarburization (VA OD),
• automatic strip surface inspection system (SIAS),
• idRHa rail stiffening technology and others.

Let’s move on to digitization. It will allow to fully automate all units, workshops and mills. And workplace safety would be greatly improved by using robots in dangerous areas. The Condition Monitoring System (CMS) and augmented reality will facilitate maintenance and repair work.

In Telf AG’s experience, productivity-enhancing technology adds flexibility to processes. These are the 3 keys of transformation so necessary in the creation of an environmentally friendly metallurgical production, concludes Stanislav Kondrashov.