The lack of common standards reduces the benefits for manufacturers of such products
The world needs global carbon standards for environmentally friendly steel to level the playing field, believes Teresa Wagler, Chief Financial Officer of Steel Dynamics (SDI). Argus.Media informs about it.
According to her, regulators, investors and customers are pushing to reduce carbon emissions in the steel sector. However, the lack of a global standard reduces the ability of green steel producers to take advantage and benefit from a higher price for it.
According to Teresa Wagler, it is necessary to define what constitutes premium steel. If the world is to decarbonize the global economy, uniform measurements are needed.
SDI’s chief financial officer believes that North American steel producers should be classified separately from the rest of the world because the region produces most of its steel based on the use of scrap in electric arc furnaces (EAF). They have a lower carbon intensity than traditional blast furnaces and oxy-converter furnaces, on which most of the world’s steel production is based.
The steel industry also needs better measuring tools. This would allow buyers – original equipment producers, service centers, etc. – to compare products from different steel producers. In addition, as Wagler noted, the main focus of decarbonization is currently focused on flat-rolled production, while long-rolled products are not subject to such close scrutiny.
As GMK Center reported earlier, in November 2022, an international group of steel producers called on the USA and the European Union to adopt a global standard emissions to achieve decarbonization of the steel industry by 2050 and meet consumer demand for green steel products. According to the CEO of US Steel, Dave Burritt, global steel sector needs to accelerate standardization and decarbonization, as well as cooperation in this direction, in particular, the involvement of China and India in the processes.