17 October 2022 – Asian stainless steel spot and futures prices rise at the beginning of the week. And China wants to focus its economy even more on the shift towards CO2 neutrality.
Stainless steel futures and spot prices up
Stainless steel futures on the SHFE rose by about 1.78% in Monday’s trading. At the same time, Asian spot prices for stainless steel have also risen by up to 2.2%, depending on the source.
China’s transition to a green economy
One of the core themes of Chinese President Xi Jinping at the current party congress was the transformation of domestic industry towards a more sustainable and environmentally friendly economy. For the steel industry in the country, for example, the massive conversion from old production capacities to more modern and greener plants had already begun in 2021.
Chinese energy already 45% renewable
According to its own statements, China wants to become CO2-neutral by 2060 and to have reached the peak in emissions by 2030. At least according to official data and statistical surveys, China had already generated almost 45% of its total energy production from renewable sources in 2021. In 2022, another 156 gigawatts (GW) of wind and solar energy are to be added.
Greener environment, more economic freedom
The focus on a greener economic policy is immensely important not only for China itself, where there has been massive overexploitation of the environment in recent decades. This change is probably also due to efforts by Western nations to establish new punitive and protective tariffs at the EU’s external borders with new market protection mechanisms, such as the European Carbon Border Tax (CBAM), and in particular to exert pressure on Asian states like China. The ulterior motive of CBAM could thus soon fall on the toes of some.
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