ArcelorMittal’s Chief Financial Officer Aditya Mittal commented recently on the challenges the steel industry is facing, including the EU carbon price (Bloomberg):
“Clearly there are significant issues in the European steel industry. Clearly energy remains a big topic of conversation, flexibility around trying to optimize your footprint is another, and a third is a discussion around carbon dioxide.”
“On the EU plan to deal with oversupply in the carbon market by temporarily reducing volumes sold at auction:
‘The move to tighten emission standards for the next phase is another cost burden. There is no steel company in Europe that can produce at those levels. This is something that the steel industry is challenging. It is clearly a contrary move to the steel action plan. I think we’re not seeing enough concrete action from the steel action plan. The only concrete action we have seen is a tightening of allowances.’”
On Thursday, November 7, the day’s biggest mover was the cash price of steel billet, which saw a 4.3 percent decline on the LME to $225.00 per metric ton. The 3-month price of steel billet saw little price change yesterday on the LME at $235.00 per metric ton.
Chinese steel prices were mixed for the day. The price of iron ore 58% fines from India were range bound. After a 2.3 percent increase, the price of Chinese HRC finished the day. Just off of a 30-day low, the price of Chinese coking coal rose 1.5 percent yesterday.
The US HRC futures contract 3-month price inched up 0.8 percent. The US HRC futures contract spot price saw little movement yesterday.