According to Goldman Sachs , China ’s increasing use of recycled metal during a time of worldwide steel shortages could see the nation ’s demand for iron ore halved by 2040 along with the profits of large producers such as Long Billiton and Rio Tinto . Scrap supply is predicted to double in the next decade , as the electrical goods consumed by China 's growing middle class are discarded ; creating a new threat to the iron ore industry which is already suffering from a 50 % plunge in steel prices from 2011 levels . As scrap supply in China rises, the price should decline further, providing an incentive for steel producers to switch to the electric-arc furnaces, said David Wang, an analyst at Morningstar. By 2025 , Morningstar estimates that iron ore prices will fall to $ 30 a metric ton , representing a new low compared to record lows of $ 38.50 set in December 2015 . Higher energy costs and the rise of electric mini - mills are also expected to challenge the iron ore industry .
According to Goldman Sachs , China ’s increasing use of recycled metal during a time of worldwide steel shortages could see the nation ’s demand for iron ore halved by 2040 along with the profits of large producers such as Long Billiton and Rio Tinto . Scrap supply is predicted to double in the next decade , as the electrical goods consumed by China 's growing middle class are discarded ; creating a new threat to the iron ore industry which is already suffering from a 50 % plunge in steel prices from 2011 levels . By 2025 , Morningstar estimates that iron ore prices will fall to $ 30 a metric ton , representing a new low compared to record lows of $ 38.50 set in December 2015 . Higher energy costs and the rise of electric mini - mills are also expected to challenge the iron ore industry .