22 August 2023 – You’re only being lied to if you believe it! Has the world’s largest H2 direct reduction plant really been commissioned in Germany and what does that actually mean? But this should not distract from us the positive facts: A look at the stainless steel market and the price development of raw materials.
World’s largest H2 direct reduction plant commissioned?
If the H2 direct reduction plant (DRI), which was recently commissioned with much fanfare by the industrial consortium Hylron on the site of the RWE gas-fired power plant Emsland in Lingen, Lower Saxony, is really the largest of its kind, then there is still a really long way to go to sustainable steel production.
Plant can produce just 1 tonne of DRI per hour
Because what the press reports like to hide is the fact that the world’s largest H2 direct reduction plant can produce just one (1!) metric tonne of DRI per hour. Thus, if the plant is operated 24/7/365 (which would be beyond any reality), it cannot even produce 9,000 MT of DRI per year.
This means that the green transformation in Europe has taken an “insane” step forward – by the way, green hydrogen (H2) is not yet available for the sustainable production of DRI.
Asian commodities continue to be positive
After many Asian commodity prices had already risen on Monday, they continued their positive trend today, Tuesday.
Copper is up about 0.35%, aluminium up 1.19%, lead up about 1.12%, zinc up 1.15%, tin up 2.54%, nickel up 1.36%, silicone up 0.62%. Iron ore jumps 4.47%, coke 4.96% and coking coal as much as 5.3%. Stainless steel and HRC futures each rise by about 1%.
EU: Stainless steel and stainless steel scrap prices rise
Positive signals can also be heard from the EU. Most recently, prices for stainless steel and stainless steel scrap have risen significantly again. And demand has also picked up in the face of emptying stocks. In addition, the first publications of stainless steel alloy surcharges for e.g. 304 either show a sideways movement, or the surcharges for 316/316L in the EU are even increasing by approx. 1.7%.
- CBAM, anti-circumvention, and positive developments in Asia
- U.S. Department of Energy expands critical materials list
- EU: Threat of new stainless steel anti-circumvention case?
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.