Tata Steel Europe (TSE) plans to raise from Sept. 1 its carbon surcharge on new contracts concluded for flat rolled steel products, an official with the company said.
“The surcharge is in line with the [European Union’s] Emissions Trading Scheme” for carbon regulation, the official told MetalMiner late last week.
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Tata Steel Europe raises carbon surcharge
As charges relating to the ETS scheme move up or down, TSE’s pricing department determines how to adjust it, the official added. He noted that reports from other publications of a one-third increase from €12 ($14.25) per metric ton to €16 ($19) were correct.
The carbon surcharge will also come under review from the start of each calendar quarter, and the company will decide then how much to adjust it and by when to enact any changes, the official noted.
Hot rolled coil in Western Europe is now about €1,200 ($1,425) per metric ton exw. Meanwhile, cold rolled coil is an estimated €1,300-1,320 ($1,545-1,570).
TSE, which is part of Tata Steel, initially introduced its carbon surcharge for flat rolled products on contracts from July 1, as the company was in deficit on its carbon allotments within the E.U. as well as in the United Kingdom.