Green steel to push up cost structures
World over, particularly in developed economies and also in China, low-emission steel-making technologies are being worked out at significant costs though some are still confined within labs. Scaling them up and achieving commercial scale is also expensive.
Till such technologies achieve economies of scale, makers of ‘green steel’ are looking at subsidies in the form of cheap funding, financial support towards research and development and taxing non-green steel.
Move towards greener steel has already started impacting markets everywhere in terms of pricing and the recent price rally was spurred, to some extent, by China’s move to cut emissions.
According to T V Narendran MD & CEO of Tata Steel, the global steel sector is passing through a structural shift.
“The last 10 years would be quite different for the coming 10 years for the global steel sector,” he recently told analysts.
A key shift would be rise in the cost structure in China which is trying to cut down on inefficient and low-value productions to reduce emission while in Europe, levy in the form of carbon tax would be imposed on imports.
Each company’s choice of which breakthrough technology to invest in will to a large degree depend on the resources available and the policies in place, according to a policy paper prepared by World Steel Association.
“It is clear that the production of low-carbon steel is going to be more expensive than steel production today,” WSA said.
The higher production cost will result from a combination of the following:
♦ Increased operational expenses, due to, for example: use of more expensive low carbon resources such as green hydrogen or low-carbon electricity; CCS equipment requiring additional energy to operate and for CO2 storage
この記事は Steel Insights の June 2021 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Steel Insights の June 2021 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Steel's Net Zero mission
The country’s commitment to achieving Net Zero within a targeted timeframe will now propel its steel sector towards a sustainable future in line with global trends.
Fuel Price Hike, Supply Chain Disruption Hurt Festive Sales
Supply chain disruptions and fuel price hikes have hurt festive sales in a big way as most auto majors posted decline in sales in October.
Seaborne coking coal offers remain range-bound
Seaborne coking coal offers moved in a narrow range in October amid global supply tightness and healthy spot demand.
Global crude steel output down 8% in September
China manufactured 74 mt in September, fall of 21% y-o-y while India’s production went up by 7% to 10 mt.
MOIL embarks on expansion projects
“Even though our country is blessed with manganese ore reserves, we import 50% of the domestic requirement. We have to lower our import dependence and save precious foreign exchange.” Ram Chandra Prasad Singh, Steel Minister
Iron ore handled by major ports down 17% in H1
The 12 major Indian ports handled 27 mt of iron-ore during H1 of 2021, down by 17% from 33 mt recorded for the corresponding period of previous year.
Shrinking China output to boost India exports
“In the third quarter of 2021, the company actively responded to the pressure from external policies, such as production curtailment and dual control system on energy consumption and intensity, as well as coal resource shortage and surging prices.” Baoshan Iron and Steel Co Ltd
Indian Railways' iron-ore handling up 25% in H1
Indian Railways in April-September of 2021 (H1) transported 84 mt of iron ore, up by 25% over 67 mt during April-September 2020.
September crude steel production up 7.2% y-o-y
India’s crude steel production in September 2021 grew 7.2 percent to 9.547 million tons (mt) over September 2020 but was down by 3.2 percent from August 2021 output, provisional steel ministry data showed.
“Five enablers: way forward to sustainable cleaner steel”
Right and scalable technology, appropriate policy guidance by government, access to finance to fund transition, willingness of customers to pay for cleaner products and infrastructure for use of new technologies are the need of the hour for the sustainable and cleaner steel industry, according to Madhulika Sharma, Chief Corporate Sustainability, Tata Steel.