Final Thoughts
Final Thoughts
Written by Becca Moczygemba
April 20, 2023
As the ISRI Convention and Expo this week in Nashville, Tenn., comes to a close, I’m sure everyone’s mind is on recycling. While green steel and sustainability have been buzzwords for some time now, evidence of change is growing.
You may recall the announcement of an alliance between US Steel, Equinor, and Shell to establish a hydrogen hub in the Ohio, Pennsylvania, and West Virginia tri-state area. Recently, the Ohio River Valley Institute released a report titled: Green Steel in the Ohio River Valley: The Timing is Right for the Rebirth of a Clean, Green Steel Industry. The report looks at US Steel’s Mon Valley Works in Pennsylvania as an example for transitioning from basic oxygen furnace (BOF) to electric-arc Furnace (EAF). It’s only 75 pages if you’re looking for some light reading. Jokes aside, the Ohio River Valley has been integral in the growth of the domestic steel industry, and it looks like it’s getting some TLC.
According to the report, full decarbonization of steel is within reach. Though technology can sometimes come at a higher cost than the traditional BOF, a combination of replacing fossil fuels with renewable energy or H2, and direct-reduced iron (DRI) can aid steelmakers in reaching their goals.
Currently, there is no global standard for green steel; something the Global Steel Climate Council is working hard to establish. Though there is not a definition etched in stone, the report refers to it as being, “steel that is produced in any way that reduces its carbon footprint.” Of course, the low emissions can be derived from the type of energy a steel mill uses to the amount of scrap they use. Which is why it’s so important to have a set standard.
The tri-state hydrogen hub is currently in the development stages, and recently submitted its application to the US Department of Energy Regional Clean Hydrogen Hubs program (H2Hubs). If you’d like to read more, plans for the hub, a project summary, and an interactive map of the infrastructure concept, can be found on the Decarbonization Network of Appalachia’s website.
By Becca Moczygemba, becca@steelmarketupdate.com
Becca Moczygemba
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Final thoughts
SMU had the pleasure of attending the American Iron and Steel Institute's (AISI's) annual general meeting in Washington this week. It was a slow week in our nation's capital, so we were able to take a leisurely stroll around the National Mall and take in the sights. Just kidding. In fact, the meeting coincided with significant trade actions announced by the Biden administration. It included, among other things, additional tariffs on Chinese steel and aluminum.
Final thoughts
Our spot price is little changed this week after moving sharply lower last week on the heels of Nucor’s unexpected price cut. Here’s one thought on that trend: Nucor's weekly HR price (aka, its “Consumer Spot Price” or CSP) has to date functioned almost more like a monthly price.
Final thoughts
What's the tea in the steel industry this week? Here's the latest SMU gossip column! Just kidding... kind of. Yes, some of the comments we receive in our weekly flat-rolled market steel buyers' survey are honestly too much to put into print. Some make us laugh. Some make us cringe. Some are cryptic. Most are serious. We appreciate them all. Below are some highlights from our survey results this week. Some of the comments that we can share with you are also included, in italics, in the buyers' own words, with minimal editing on our part.
Final thoughts
Last week we wrote about a brief lull in price movement, labeling it a period of wait and see. It did, in fact, turn out to be pretty brief. This week... things are little bit different. Perhaps right now we are more in a period of "hope and pray" or "Here we go, hold on to your hats."
Final thoughts
Unless you've been under a rock, you know by know that Nucor's published HR price for this week is $760 per short ton, down $65/st from the company’s $825/st a week ago. I could use more colorful words. But I think it’s safe to say that most of the market was not expecting this. For starters, US sheet mills never announce price decreases. (OK, not never. It has come to my attention that Severstal North America rescinded a price increase back on Feb. 14, 2012. And it caused quite the ruckus.)