Speaking at the Global Steel Summit 2023, John Short, Managing Director of Boomer Commodities, highlighted developments in the trade. He explained that major investors are using more derivatives to delay the EU buyer's price exploration.
'This is leading to a preference for higher quality products with lower price risk and reduced need for stocks. Buyers are paying more for imported coils," he continued.
The importance of decarbonization was also emphasized in the speech. 'EU long products are scrap-based and low-carbon, and the use of green steel is a major factor in reducing the emissions of the automotive supply chain by 1/3. I would like to point out that even if only half of the global green steel initiatives were to materialize, EU supply would outstrip demand.
On taxes, Short said that importers are obliged to report direct and indirect emissions as well as any carbon price paid abroad.
2022 The three most important countries in EU crude steel production;
- Germany 36,849
- Italy 21,599
- France 12.234
In his presentation, Short said that although imports in Europe in 2023 decreased by around 6.5% year-on-year, the percentage of total consumption increased marginally to 28%.
Finally, he noted that there is uncertainty about EU steel demand and that apparent steel consumption is expected to recover only from the fourth quarter of 2023. He said that carbon steel, high alloy steel and stainless steel are fluctuating on a tonnage basis.
Carbon Steel 77%
High Alloy Steel 18%
Stainless Steel 5%
2023 EU steel production recovered in March-May after a slowdown in the winter months and this recovery played a role in the price increase in the second quarter.
In conclusion, John Short, Managing Director of Boomer Commodities, speaking at the Global Steel Summit 2023, discussed trade developments, decarbonization, duties and dumping, and EU steel demand.
Comments
No comment yet.