ArcelorMittal Poland has called for support in its decarbonisation efforts as it says mills cannot bear the additional costs in challenging market conditions, the company told McCloskey on 13 June.
Decarbonisation requires installation of new equipment and implementation of new technologies to meet the EU’s CO2 emission targets. And the transition needs to be done under strain of a challenging market, which already has some additional costs that non-EU steelmakers do not face, including the EU Emission Trading System (ETS). In addition, energy costs in Europe are the highest in the world, ArcelorMittal said.
The EU aims to achieve a 55% reduction in emissions by 2030, and to become carbon-neutral by 2050.
The EU market has been under pressure from the rapid rise of competitive steel imports: “Imports from outside the EU, where production costs are significantly lower, already satisfy almost 30% of apparent steel consumption in Europe,” the company said.
The statement has been confirmed by market participants who cited low import offers for hot-rolled coil as one of the driving forces behind the domestic price drop.
“Against this backdrop, no steel producer can bear the costs of the transition to low carbon-emissions steelmaking alone,” ArcelorMittal Poland said.
The steelmaker also calls for a reduction of energy costs and effective mechanism to prevent carbon leakage.
“We are glad that the European Commission has taken into account the majority of the steel industry’s requests in the Steel and Metals Action Plan. Now, it will be crucial to implement these measures quickly,” the producer said.
The European Commission unveiled its official European Steel and Metals Action Plan on 19 March.
ArcelorMittal Poland has spent over 1 billion zlotys (around $270 million) on projects aimed at reducing its environmental impact and increasing energy efficiency, including blast furnace overhaul. For additional details on steel decarbonisation initiatives in Europe, please see McCloskey’s European Green Steel Profile.
ArcelorMittal’s Dąbrowa Górnicza plant is one of several producers of 120-metre long rail used in high-speed rail.
Maria Tanatar
