22 November 2024 – The leading US index, the S&P 500, has gained an impressive 33% in euros including dividends since the start of the year. This development reflects the strength of the US economy. And European recycling association calls for a move away from DRI in the EU.
Positive US economic data drives S&P 500 on course for success
The leading US index, the S&P 500, has gained an impressive 33% in euros including dividends since the beginning of the year. This development reflects the strength of the US economy. The number of initial jobless claims fell to its lowest level since April and remained well below expectations at 213,000. The Atlanta Fed’s GDPNow indicator forecasts solid growth of 2.6% for the current quarter.
Companies with stronger earnings prospects
The positive economic trend is strengthening companies’ earnings prospects: After a rise in profits of around ten percent this year, an increase of 14 percent is expected for each of the next two years. Although the S&P 500 is currently valued slightly above the historical average, there could be further potential – especially if the central bank maintains its loose interest rate policy. The strong economy and optimistic company forecasts are giving the market additional momentum.
European Recycling Association calls for a move away from DRI
In a press release this week, the European Recycling Association EuRIC emphasized the need for practical and cost-effective measures to promote the circular economy and advocated recycling-based production methods such as the electric arc furnace (EAF). EAF technology can reduce emissions by up to 95%, offering a significant advantage over direct reduced iron (DRI) at a fraction of the cost.
EAF can make a significant contribution to reducing emissions
Unlike the DRI process, which relies on the development of green hydrogen infrastructure, the EAF process uses recycled steel, which has immediate environmental benefits. According to EuRIC, this proven, scalable approach shows the potential to make a significant contribution to reducing emissions while supporting a circular economy.
By prioritizing accessible solutions such as EAF, the industry can accelerate progress towards sustainability without having to wait for future advances in alternative technologies.
EuRIC demands contrary to the EU steel industry
The recycling association’s pragmatic proposal is at odds with the insistent demands of EU steel producers to accelerate the expansion of hydrogen-based DRI production. There is currently virtually no relevant DRI capacity in the EU and the planned expansion of production would swallow up billions in subsidies from the EU and the member states.
Latest news
- Good prospects for the US construction industry in 2025
- SHFE nickel prices rose on Wednesday
- China eliminates export tax rebates for aluminum
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
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.
