British steel giants demand: scrap export ban now!
British Steel Industry and Scrap Export Ban:
- British Steel’s Call for Scrap Export Ban:
- British Steel, representing major steel producers, is advocating for an EU-style scrap export ban.
- The aim is to make domestic steel production greener by restricting the export of up to 10 million tonnes of ferrous scrap per year.
- The motivation behind the call is the claim that 43 countries, comprising over three-quarters of global crude steel capacity, have already imposed similar restrictions.
- Harmony with EU and Concerns about Environmental Standards:
- British Steel aligns with EUROFER and European neighbours in favouring stricter export rules.
- The argument is against countries with lower environmental standards, implying that these standards impact the competitiveness of the British steel industry.
- Potential Government Response:
- There is speculation that the British government might accede to the demands of steel manufacturers.
- This could be a source of concern for the independent recycling industry, fearing consolidation by larger producers.
- Role of Scrap in Steel Production:
- The report emphasizes the importance of scrap as a raw material for producing low-CO2 steel.
- Financial analysts suggest that scrap is the future’s crucial raw material due to its infinite recyclability.
- Resistance from Recycling Industry:
- The independent recycling industry opposes export bans, possibly due to concerns about being dominated by larger producers.
- Mention of price dumping of stainless steel scrap by EU producers is highlighted as a point of contention.
- Pressure from Recycling Associations on CO2 Certificates:
- Recycling associations are urging politicians to reduce the allocation of free CO2 certificates if European steel manufacturers do not increase crude steel production from scrap.
- Europe is criticized for lagging behind countries like the United States and Turkey in using scrap for steel production.
Economic Situation in Mexico:
- Consumer Confidence in Mexico:
- Consumer confidence in Mexico has reached a high of 47.3 points in November, the highest level since February 2019.
- Both current sentiments and future prospects for households and the economy are positive.
- Business Confidence and Stability:
- Business confidence remains strong with a stable business confidence index at 54 points, a level not seen for nine years.
- Demand from the USA Driving Economic Growth:
- The main driver of Mexico’s economic success is attributed to strong demand from the United States.
- Mexico has become the most important trading partner for the USA, surpassing China and Canada, with almost 80% of Mexican exports going to the USA.
- Booming Industry:
- The Purchasing Managers’ Index for November indicates a robust industry with a score of 52.5 points, signalling continuous improvement in Mexico’s economy.
In summary, the British steel industry is grappling with the debate over a potential scrap export ban to promote greener domestic steel production, while Mexico is experiencing economic success, driven by high consumer and business confidence, as well as increased demand from the United States.
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British steel giants demand: Stop scrap exports now! – Stainless Espresso