Tata Steel Europe is in the process of increasing its carbon surcharge by a further €4/tonne ($5) on the back of higher costs for EU Emissions Trading System (ETS) allowances, Kallanish learns from sources.
The surcharge was initially introduced by the group back in April. Tata was the first to apply such a surcharge in its new contracts, but other suppliers are expected to soon follow. Following the latest increase, the surcharge is now calculated to be at €16/t for new sales.
EU ETS prices reached an all-time peak of around €58/t at the beginning of July; prices are now at €50-55/t, Kallanish notes. Earlier this month the European Commission confirmed the intention to cut free allocations of ETS more rapidly than previously expected, further raising concerns over ETS prices going forward.
Emanuele Norsa Italy