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Impact of Environmental Policies on the Global Steel Industry: Technical and Economic Performance Assessment from the EU Perspective

Metal Bulletin Research (MBR) is the first to publish a comprehensive and independent impact assessment study of EU environmental policies on European integrated steel producers performance, as well as forward outlook.

The report encompasses a comprehensive research programme, comprising site visits by dedicated MBR consultants, and direct interview with key environmental and strategy managers among the EU steel industry.

Why this new study is so important now

The environment regulatory and operating environment facing EU steelmakers is undergoing significant change and is expected to have a major impact on steelmaking costs in the medium-to-long term. Moreover, the anticipated adaptation of the new global environmental agreement in December 2015 would imply EU steelmakers experience would become topical for the global steelmaking community. At the time of writing, rising steel product imports and higher carbon costs are already some the biggest challenges facing the steel industry in Europe.

Many steelmakers and associated industry associations including EUROFER, believe that the current proposals for the European emissions trading system (ETS) will put the region’s steel industry at further risk in terms of steel plant competitiveness and job losses. 

Already, environmental regulations in the EU have already had a substantial effect in determining plant-by-plant modernisation, production and operation planning.  In 2016, the EU benchmark cap for free allocations is expected to be revised down turning to deficit. Consequently, steelmakers will see further ramp up of regulatory and financial pressures.
Yet there are now ever more challenges trends from geo-political tensions, raw material prices, energy and steelmaking cost implications, new regional steel capacity growth, the changing structure and role of the Turkish steel industry and the threat of cheap imports undermining domestic regional steel producers.

This brand new and exclusive study provides the following: 

• Independent overview of the environmental legalisation framework currently adopted in the EU

• The evolution of the global and EU environmental legal framework. A detailed analysis of adopted and currently active legal acts and emission limits faced by steelmakers in the EU

• Apparent CO2 emissions by steelmaking process in 2014 for each EU integrated production site is supplied in the study, including EAF vs BOF steelmaking, coke making, sintering, pelletizing plant and vacuum degassing/ladle
• Historic carbon emission released and carbon intensity statistics by plant for major EU EAF and BOF steelmakers

• Analysis of the direct economic effect environmental legislations to-date are having on the performance of European integrated steel producers including:

o Ghent, ArcelorMittal 
o Dunkirk, ArcelorMittal 
o Fos-sur-mer, ArcelorMittal 
o Bremen, ArcelorMittal 
o Ostrava, ArcelorMittal 
o Galati, ArcelorMittal 
o Duisburg-Bruckhausen, ThyssenKrupp 
o Taranto, ILVA Riva 
o IJmuiden, TATA Steel 
o Krakow, ArcelorMittal 
o Raahe, Ruukki/SSAB 
o Salzgitter, Salzgitter Flachstahl 
o Dillingen, ZKS 
o Port Talbot, TATA Steel 

• Forecast effect of the reduction in free carbon emissions allowances on carbon prices (€/t) from 2016 out to 2020

• What strategic actions are each major EU steelmaker adopting and what are the viable decarbonisation strategies available?

• How does each steelmaker rank on a scale in terms of emissions reduction, environmental project capex, degree of innovations and age of steel making facilities? In short, which steelmakers are the most decarbonisation savvy and which are lagging behind?

• Analysis of the direct impact environmental investment projects have had on the cost of crude steel production at each major EU individual integrated steelmaking site.

• Actual list of standalone environmental investments and measures undertaken by each major EU steelmaker, and their individual impact on both operating and total costs on a by-plant basis. Key projects assessed in terms of capex and operating cost/saving impact for each major plant include: 

o Secondary dedusting units; 
o Moveable chimney on converter 2 at the steel workshop
o Heat recovery systems at the sinter plant
o A third walking beam furnace construction at the hot strip mill
o Dust collectors at dispensers of sinter plant
o Gas desulphurization system at the coking plant
o Coking plant modernisation
o Modernisation of power drives at the quarto plate mill
o Steel mill power plant capacity ramp up from sustainable sources
o Emission and dust control system installation at the power plant
o Sludge drying and retention station for meltshop
o Modernisation of two turbine blowers at blast furnace

• Detailed technical database detailing sintering, coking coal, DRI/HBI, blast furnace, BOF, EAF, vacuum degassing and ladle facilities for each EU plant.

For more information please call +44 (0) 20 7779 8000 or email us. If you are in the Asia / Pacific region please call +61 3 5221 6154.

Other relevant Metal Bulletin Research reports include:

A Strategic Five Year Market Outlook for the African Steel and Raw Materials Industry
- Steel: Weekly Market Tracker
- Steel Raw Materials: Weekly Market Tracker 
- The Quarterly Global Iron Ore Cost Service
- The Quarterly Global Steel Cost Service
- Steel and its Raw Materials: A Global Market Outlook to 2020

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