2 February 2026 – Asian markets opened the week with pronounced volatility, which media reports attribute in part to AI-driven effects. Stainless steel: can CBAM-relevant CO2 emissions really be optimised by using pure Class I nickel?
Markets Show Strong Moves at the Start of the Week
Despite all the turbulence of recent weeks, markets had seen strong momentum and, in some areas, signs of overheating. The recent shift of capital out of gold and silver into industrial metals was a clear indicator of this trend. It was therefore foreseeable that some form of short-circuit reaction would eventually occur-particularly against the backdrop of rising tensions between the United States and Iran last week.
At the start of the week, this resulted in sharp moves on Asian equity markets. For example, South Korea’s KOSPI index fell by as much as 5%, and these developments also had a noticeable impact on commodity markets.
Emerging developments could be linked to artificial intelligence
Already during the initial moves on Friday, we suspected that emerging developments could be linked to artificial intelligence. Markets are not only increasingly concerned about a potential AI bubble and signs of overvaluation, but AI-based systems are now widely used by trading houses and financial institutions and play a significant role in shaping decision-making.
Accordingly, today’s reporting on the causes of these pullbacks is mixed. While some commentators point to growing concerns over AI, others suggest that AI-driven trading processes themselves may have contributed to the moves.
Stainless Steel: Optimising CO2 Emissions with Pure Class I Nickel?
We were genuinely surprised to see that some self-proclaimed “expert” outlets still claim that nickel pig iron (NPI) or ferro-nickel used in stainless steel production could simply be replaced with Class I nickel (high-purity nickel with 99.8% nickel content) in order to optimise CBAM-relevant CO2 emissions.
You do know how Stainless steel is Produced – right?
Even though we were momentarily at a loss for words, the question has to be asked: do you actually know how stainless steel is made? Or do you still subscribe to the belief that Western stainless steel mills produce according to their monthly alloy surcharge calculations and melt stainless steel from LME nickel, ferro-chrome, and carbon steel scrap?
Share of Class I Nickel in the Production of Stainless Steel is very low
The share of Class I nickel in the production of one tonne of stainless steel amounts to just 0.7% to 1.2%. The dominant input is nickel pig iron, whose CO2 emissions are significantly lower than those of ferro-nickel. This also explains why European producers have increasingly relied on NPI since they have created – largely by their own actions – a growing problem with the availability of stainless steel scrap. If NPI were indeed such a significant driver of emissions, why would European mills be using it in their EAF-AOD operations?
So what is gained from such incorrect reporting? And who, exactly, benefits from it?
It is always the same “expert” outlets that immediately pivot to counter-reporting as soon as prices begin to rise. This raises legitimate doubts as to whether proper journalistic work is being done at all. Phoning around the market once a month, collecting price quotes, and then presenting oneself as an expert does not qualify as serious analysis.
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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.
