This morning in metals news, the European Steel Association (EUROFER) offered its reaction to the new European Green Deal, China’s steel output could fall next year and China’s imports of iron ore dropped in November.
EUROFER lauds carbon border adjustment mechanism in European Green Deal
This week, the E.U. unveiled the European Green Deal, which EUROFER largely supported in a statement Wednesday.
“We welcome the aims of the European Green Deal,” said Axel Eggert, EUROFER director general. “In charting a series of sectoral and specific policy plans, it is clear policymakers take seriously the need to transition to a carbon-neutral future with industry, rather than without it.”
EUROFER also highlighted the initiative’s carbon-neutral ambitions, particularly through the lens of steelmaking and competition against lower-lost, less “green” steel producers.
“It is now of utmost importance to develop a regulatory framework that creates markets for CO2-neutral products: these have significantly higher production costs, for example because of the use of highly-priced hydrogen instead of coking coal in the steelmaking process,” Eggert said. “Policymakers must establish – jointly with us – how ‘green’ steel can compete against carbon-intense, low-cost steel imports that have a significantly higher CO2 footprint than EU-made steel.
“The EU seeks to make Europe the first carbon-neutral continent by 2050, which is a high ambition. The steel industry is already working on a range of low- and carbon-neutral solutions that could lead to reductions in CO2 emissions from steelmaking by up to 95% in 2050 under an optimum regulatory framework. It is why a partnership on clean steel – as well as other means to ensure the steel industry remains competitive even as it becomes carbon-lean – is so essential.”
China’s steel output to drop in 2020?
Despite mandated winter production cuts over the past few cold seasons, China’s steel output has continued to ascend.
Next year, however, the country’s steel output is expected to come down from its record high set this year, according to the China Metallurgical Planning and Research Institute.
According to Reuters, the institute forecasts steel output will fall to 981 million tons next year, down from 988 million tons this year.
China’s iron ore imports drop
In other China news, the country’s imports of iron ore fell in November, Reuters reported.
China imported 90.65 million tons of the steelmaking material last month, down 2.4% from the October import total, according to the report.