Australian steel maker: Green steel is coming, but it's not here yet
Australian steel maker: Green steel is coming, but it’s not here yet

1 February 2024 – When announcing a modernization investment in the classic blast furnace route, Australia’s largest steel maker justified the decision by stating, among other things, that technologies for green steel are currently neither available nor economically viable. And the US Federal Reserve continues to keep interest rates stable. Bets on the stock markets on a possible interest rate cut do not seem to be paying off.

Australian steel manufacturer: Green steel is coming, but it’s not here yet

The Australian producer BlueScope recently announced its intention to modernize an old blast furnace at its NSW plant, where coal and iron ore are used to produce steel. And made it clear that this modernized blast furnace will continue to operate according to the traditional process with minor improvements and will have a shelf life of at least 20 years.

Technologies for green steel not available yet

The interesting thing is that BlueScope has made it clear that although green steel will come at some point, no economically viable and sensible technologies are yet available to actually produce it. BlueScope expects that these green technologies will not be ready for the market for at least 10 years and that the company must make decisions now in order to still be able to produce in Australia in 100 years’ time.

Clear message against claims from Europe

This is a clear statement against the European producers and desperate industry media, who constantly claim how little CO2 blast furnaces in the EU spew out and how clean their production is in Europe, but have probably made no contribution to CO2 reduction in the last 20 years, except by reducing their crude steel production volumes.

No interest rate cut by the FED: bets on the stock markets do not seem to be paying off

As expected by most economists and us, the US Federal Reserve has left interest rates at their current level and announced that interest rates have peaked but that the time for cuts has not yet come. Jerome Powell, Chair of the Federal Reserve of the United States, was also skeptical about a first interest rate cut in March, even though he did not want to rule it out for 2024.

Speculators on the stock exchanges, on the other hand, had bet on an interest rate cut by the Fed and priced it in accordingly. Accordingly, investors reacted somewhat huffily. Overall, however, the Fed’s decision is likely to have contributed to a stabilization of the economy and a further decline in inflation.

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