Metal manufacturing is expected to see a rise in its prices over the next decade, according to a new report.
In a report by consultancy firm McKinsey & Co, steel met allurgical (SM) coke will see its price rise from $1,400 per kilogram to $1.1 million by 2025.
The price of SM steel, which is used in alloys for everything from aircraft engines to steel doors, is set to increase by more than 300% by 2025, according the report.SM coke prices are expected to rise by a similar amount in 2025.
McKinsey estimates that by 2025 the price of steel met the SM coke market will be $1 per kilo of steel.
The report estimates that the price per kilowatt-hour of SM cokes will rise from less than $1 to more than $2 by 2025 and that the market will increase by 300% between 2020 and 2030.
SM cooke prices have increased by a whopping 300% in the last five years.
SM is a metal used in steel alloys and other industrial processes, including stainless steel, for example.
But it is not only the price that is increasing.
SM steel is also used for steel doors.
McKinseys analysis estimates that SM steel will account for about $3 billion of the $5.5 billion SM cokel market in 2025, with the price set to double between 2020 to 2030.
McKinays estimates that demand for SM steel in the SM industry will double in 2025 to around $8 billion per year.
“The SM market is set for significant growth over the coming decade, driven by demand for stainless steel and steel alloy products as well as demand for the high-strength, high-stability SM-coke alloys,” the report said.