10 days ago • Posted by Martin Boujol
US steel prices have more than doubled in under 6 months
The world's most commonly used metal, which laid the foundations of the industrial revolution, has grown into a massive industry turning over $2.5 trillion a year and employing millions of people. However, its production is anything but climate friendly, as iron and steel production account for 7-8% of all direct fossil fuel emissions. As many companies are starting to want to diminish their carbon footprints, it will make the production prices rise. The US and Europe seem to have stricter regulations than China on the matter, where one produces 2 tons of CO2 for each ton of steel produced, while Europe only allows 1. As a result, steel price in the US and Europe have more than doubled under 6 months. There remains questions as to if there are enough reasons for steel producers to make a wholesale shift across the industry.