The steel industry is more exciting and interesting than you might think. Global politics, international competition, luxury cars, and local labor disputes highlight our steel industry review…
Steeling the News: What’s Happening in the Steel Industry?
India Leader Says Nation Will Become #1 Steel Producer
Speaking at a conference on mineral and metal production, Indian politician Jyotiraditya M Scindia said that the nation will become the world’s top steel producer by 2030. Currently, India is the #2 producer behind China, but the Indian government is implementing ambitious plans to reach 300 million metric tons of steel production by 2030.
Scindia also touted the belief that India has now become a net exporter of steel (meaning they sell more than they buy) instead of being a net importer. Steel is considered the primary sector that results in infrastructure growth and stable economic prosperity.
Steel Suppliers Argue for Tariff Exclusions
Leaders of the American Metals Supply Chain Institute (AMSCI) argued that steel suppliers in the United States should have exclusions from tariffs. AMSCI president Richard Chriss claimed that the tariffs are no longer needed to protect steel production. Claiming the steel industry is now more efficient, the “continued protection (from tariffs) on the current scale is simply not necessary.”
President Joe Biden has indicated that he would reverse several tariffs implemented by the Trump administration.
BMW to Use Low-Carbon Steel from Chinese Manufacturer
German automaker BMW has announced they will use low-carbon “green steel” in their vehicles. The material, which is made by Chinese steelmaker HBIS, will be used in vehicle production at the company’s plants.
Low-carbon automotive steel releases 10 to 30% less carbon dioxide during the production phase. The German company’s plants in China will begin using the steel by 2026. “Green steel” is produced through electric-arc furnaces with renewable source electricity. (It’s not so much the final product, but the production process that makes “green” steel.)
Canadian Steel Union and Major Manufacturer Reach Agreement
In an ongoing labor fight, the United Steelworkers Local Union 2251 and Algoma Steel Group have reached a “tentative” agreement to continue production. The Canadian union is recommending the offer and both parties have agreed to extend the current contract so work can continue at the Ontario plant.
This is good news for anyone involved in the steel industry, steel construction, or anyone who may purchase steel in the near future. However small, a halt in production could have increased steel prices, even if the increase would have been small.
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