Industry News

U.S. steel executives favor carbon border adjustment to combat 'dirty' imports

Views : 207
Update time : 2021-11-03 22:14:01

U.S. steel industry executives said on Tuesday they favor a carbon border adjustment mechanism that raises the U.S. price of "dirty" steel produced in China and other countries with high carbon emissions.

U.S. steel producers claim to have the world's lowest carbon emissions and told a news conference that a trade arrangement to be negotiated between the United States and Europe Union to restrict market access for steel with high carbon intensity would provide them with a comparative advantage.

Plans for the future arrangement were announced over the weekend as part of a deal to end a long running transatlantic trade dispute.

"We envision, subject to negotiations between the governments, some type of a trade measure that takes into account the differential carbon intensity and that will that will be beneficial for us," Kevin Dempsey, president of the American Iron and Steel Institute, one of the industry's two major trade groups.

Dempsey said he believed the carbon-based trade measures could provide U.S. and EU leverage to push China to reduce chronic excess capacity, but it is unclear how effective that can be.

"The Chinese industry benefits not only from weaker environmental standards, you have government subsidies or government ownership. There's a whole series of ways in which the Chinese government provides unfair competitive advantages to the steel industry of China," he said.

More than 70% of American steel is produced in electric-arc furnaces (EAF), which melt mostly scrap steel rather than smelting iron ore in coal-fueled blast furnaces, the method prevalent in China.

Related News
Read More >>
What Tariffs, Steel Prices Mean for E&S Construction Insurance in California What Tariffs, Steel Prices Mean for E&S Construction Insurance in California
Apr .25.2025
What Tariffs, Steel Prices Mean for E&S Construction Insurance in California
Nickel Price Update: Q1 2025 in Review Nickel Price Update: Q1 2025 in Review
Apr .25.2025
Nickel Price Update: Q1 2025 in Review
Higher steel prices benefiting Region steel mills Higher steel prices benefiting Region steel mills
Apr .25.2025
Higher steel prices benefiting Region steel mills
Vale's net profit drops 17% on lower iron ore prices Vale's net profit drops 17% on lower iron ore prices
Apr .25.2025
Vale's net profit drops 17% on lower iron ore prices