This morning in metals news: amid GFG Alliance’s financial crisis, ArcelorMittal has reportedly asked for cash upfront to supply Sanjeev Gupta’s steel mills; meanwhile, a so-called “green hydrogen” facility in Germany has started operations; and, finally, the LME three-month aluminum price has trended sideways this month.
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ArcelorMittal to ask for cash upfront to supply GFG mills
We’ve covered GFG Alliance’s financial crisis amid the collapse of its primary financial backer, Greensill Capital.
As a result, suppliers are looking for assurance of payment.
This week, Bloomberg reported ArcelorMittal is asking for cash upfront to supply GFG mills, as the latter grapples with questions of financing.
German green hydrogen facility starts up
A green hydrogen project in Germany called WindH2 has kicked off operations, CNBC reported.
The project involves German steelmaker Salzgitter, Avacon (a subsidiary of electric utility company E.ON) and multinational chemical company Linde.
Energy from the plant will help to decarbonize the steelmaking process.
“WindH2 is a cornerstone in the SALCOS® – SAlzgitter Low CO2 Steelmaking technology project developed by Salzgitter AG,” Salzgitter said in a release. “SALCOS® sets out the most efficient way, realizable in the short term, to reducing CO2 emissions, and even for virtually CO2 free steel production in the long term. Hydrogen generated from renewable sources will replace the carbon necessary for smelting iron ore. The three blast furnaces operated to date need to be gradually replaced by a combination of direct reduction plants and electric arc furnaces. Transforming steel production in this way could reduce the associated CO2 emissions by around 95 % over the period up until 2050.”
Meanwhile, the project cost is around €50 million, Salzgitter added.
LME aluminum trends sideways
After a dip to close February, the LME three-month aluminum price has trended mostly sideways this month.
LME three-month aluminum closed Thursday at $2,181 per metric ton. Furthermore, the price is up 6.31% from a month ago.
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