Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Steel prices
Stock Market

Steel prices in China hit a record low

20.09.2022
2 min read

Steel prices on Chinese exchanges drop to record lows

The other day, steel exchange prices on the Shanghai platform showed a drop. Such dynamics are surprising if we take into account the decline in inventories of raw materials.
However, experts note that the demand for steel in the near future may fall significantly. This is primarily due to a slowdown in the real estate market. Since the beginning of the year, the cost of construction materials rose, forcing many developers to slow down the pace of projects.
The cost of steel has now fallen to its lowest level since the pandemic began in 2020. The situation in the industry is exacerbated by the COVID-19 outbreaks in China and tough measures to address them. As a result, steel prices continue to fall despite the reduction in raw material inventories, which is causing serious concerns for the manufacturing sector.
Global Energy Monitor conducted a study of the global steel industry. According to the results, there is a serious probability that the segment will lose from $345 billion to $518 billion in the next few years. The main reason for asset write-offs is the use of blast furnaces, which are the traditional way to cast steel. However, their use runs counter to the strategy to reduce carbon emissions, which is followed by a large number of countries.Steel prices in ChinaBlast furnaces use coal, which is being phased out. If the consumption of this raw material is reduced, blast furnaces will become useless, which will lead to serious losses for the industry. Previously, projections of asset losses were estimated at $70 billion.
First of all, the production facilities that are located in China, India, and other Asian countries are expected to suffer losses. It is in this region that about 80% of new steelmaking facilities are planned to be built. The main raw material for them will be coal. Global Energy Monitor notes that facilities for the production of more than 345 million tons of metal per year are being built or will be built in the near future.
However, such a pace is inconsistent with the achievement of climate goals. Now about 7-9% of total carbon dioxide emissions come from the steel industry.
One way to reduce emissions in steel production is to use electric arc furnaces instead of blast furnaces. The first ones are used to melt scrap metal and emit less carbon dioxide than the traditional process. Some companies have already switched to this type of steel production, but it requires large investments to modernize the industry.
In addition, a number of companies are researching and introducing other technologies that will capture carbon so that it is not emitted into the atmosphere. However, such innovations require a lot of money and time to implement, and many companies are not ready to give up blast furnaces.

Tags: Stock Market
0
Previous Post Kazakhstan and Israel plan to increase exports of goods Next Post How BI and RPA technologies help develop e-commerce

You Might Also Like

Global investors
Stock Market
Global investors are increasingly focused on the Chinese market
13.04.2022
green bonds
Stock Market
H&M issues €500 million worth of green bonds
14.11.2021
EOS network
Stock Market
EOS network burns coins: causes of destruction 132 million dollars
19.11.2020
Pexip
Stock Market
Video communications service Pexip is planning an initial public offering in Norway
18.01.2021
SWIFT considers interaction with digital currencies
Stock Market
SWIFT plans to interact with digital currencies
22.06.2022
FRS has lowered the stakes
Stock Market
FRS has lowered the bet: review of the new strategy from Jerry Powell
01.08.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Analysts: Egypt’s economy to continue falling in 2023

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Analysts: Egypt’s economy to continue falling in 2023
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics