Synopsis: Wood Mackenzie's recent report highlights a significant transformation in the steel industry. As the industry intensifies its efforts to reduce carbon emissions, new eco-friendly production methods are emerging. This shift will reshape global steel production and trade networks.Article: Climate change concerns have put industries across the world under scrutiny, and the steel sector is no exception. In fact, it stands on the cusp of a revolution. A new report from Wood Mackenzie suggests that the steel industry is poised for a major transformation, driven by its goal to decarbonise.This comprehensive study, "Metalmorphosis: how decarbonisation is transforming the iron and steel industry," delves deep into the evolving methods of steel production. One of the main takeaways is the anticipated emergence of new metallic hubs around the globe, all as part of the industry's quest to slash carbon emissions.Key to this green transformation is the advancement in electric-arc furnace (EAF) technology. Currently, EAF, a lesser carbon-producing method, accounts for 28% of the global steel production. However, projections indicate that by 2050, its contribution could soar to 50%. Achieving this would necessitate a hefty investment of US$130 billion.Moreover, as traditional steel production processes take a back seat, there will be a surge in demand for greener alternatives. Feedstocks like Direct Reduced Iron and high-grade scrap will gain prominence. Wood Mackenzie's research points out that by 2050, these eco-friendly feedstocks might comprise 54% of the metals market, indicating a decisive shift in the industry's orientation.This green wave in production will also create new epicentres for eco-friendly iron and scrap production. However, it's not just about cutting carbon; it's also about strategy. The report suggests that the placement of these new production facilities will largely depend on the availability of low-carbon hydrogen, making regions like the Middle East and Australia potential frontrunners.Trade dynamics are also poised for a shift. In regions where carbon costs are high, there's likely to be a greater inclination to import green DRI instead of finished steel from high-emission producers. This could affect the traditional steel giants like China and India.The overarching aim of these changes is clear. The steel industry, which currently contributes to about 8% of global carbon emissions, is ambitiously working towards a greener future. With adequate investment and the right policies in place, it is very much possible to reshape the industry's existing trade and value systems.Conclusion: The steel industry is at a pivotal point. Its commitment to decarbonisation promises not only environmental benefits but also a complete overhaul of its production and trade dynamics. With innovative technologies and strategic investments, the future of steel looks green and sustainable.