The second part of our short series is about the numbers behind the green future from hydrogen promoted by the European Commission in relation to its own steel industry. We also pull in the analysis of the major consulting agency McKinsey and take a look at it. And also explore the question of where the blueprint or script for European green steel comes from.
The European Union is to become CO2 neutral by 2050. With its “Fit for 55” plans and the “European Green Deal”, the European Commission has set ambitious targets. 55% emission reduction by 2030 and CO2 neutral by 2050. In addition, the Carbon Border TAX CBAM (Carbon Border Adjustment Mechanism) is still planned to intercept dirty products at the border to the EU and to impose a CO2 price.
On May 5, 2021, the European Commission (EC) published an update to its 2020 New Industrial Strategy. Under the motto: “Building a stronger Single Market for Europe’s recovery”, the Commission wants to lead Europe out of the crisis.
Surprisingly, hidden in the bowels of this strategy update was a Commission Staff Working Document (CSWD) entitled “Towards competitive and clean European steel”. Which, of course, we couldn’t help but take apart for you.
Aided by the Corona pandemic, serious structural problems in the global production, supply and distribution of steel and stainless steel have been evident since November 2020. European and American steel producers no longer manage (or do not want to manage) to fully supply their markets. In addition, the USA and EU have imposed strict import restrictions which make it almost impossible for most stainless steel purchasers to reliably buy material abroad.
BMWi: How the German Federal Ministry of Economics influences (world) steel policy – Stainless Cappuccino
According to the German Federal Ministry of Economics and Energy (BMWi), Germany was the world’s seventh-largest steel producer in 2019, with 39.6 million tons. Of these nearly 40 million tons of steel, 20 million tons were exported in flat steel. With a total turnover of 32.8 billion euros and 84,000 steelmakers directly employed in 2019, it belongs to the basic industry, according to the Federal Ministry.
Green Steel and CBAM: Or how the steel producing industry is artificially kept alive – Stainless Cappuccino
In a test vote, the EU tried to gauge how a Carbon Border Levy would be received by European parliamentarians. By 444 votes to 70 (181 abstentions), this vote was in favor of introducing CBAM (Carbon Border Adjustment Mechanism). EUROFER, the lobby organization of European steel producers, has expressly welcomed this in a recent statement. Reason enough for us to take a closer look at the whole issue.
Indonesia, Tsingshan and the crashed nickel – What is really happening in the nickel market? – Stainless Cappuccino
Already at the end of February 2021, according to analysts, there were typical consolidations in commodity prices at the end of the month. By March 2, the nickel price had apparently regained its footing and the trend was pointing upward. At that time, industry news headlines and analysts were also still confident that nickel would continue to rise in price.