From S&P Global Platts, July 12:
The continued rise of iron ore prices is in focus this week, along with Chinese steel sector trends that will influence demand. S&P Global Platts editors and analysts also look at oil supply, demand and price trends, and anticipate the European Commission's upcoming climate policy package.
1. Iron ore prices surge despite high ferrous scrap imports to China
What's happening? China's recycled steel imports hit 114,741 mt in May, more than 28 times the volume seen in January, when the country lifted import restrictions on ferrous scrap. Despite the growing volume, iron ore prices continued surging to all-time highs, propelled by recovering global steel demand.
What's next? China's emission and production controls in the steelmaking sector in the second half of 2021 are expected to turn the tide for raw material demand, for the worse. However, the same environmental goals could play in favor of recycled steel in the longer term as China expands its electric arc furnace capacity, which releases less carbon emissions and uses ferrous scrap as the main feedstock. S&P Global Platts Analytics expects China's EAF steelmaking capacity to increase by 17 million mt/year in 2021 to about 198 million mt/year.
Interactive: Platts Iron Ore and Metallurgical Coal Specifications Tree
....MUCH MORE
Click through and scroll down for Platts' "EU carbon market extension 'high risk, low reward for consumers'", these are gimlet-eyed, pragmatic analysts; no virue-signaling or airy-fairy dreamtime musings.
I was immediately reminded of one of the smartest people to look at the energy transition.
We've embedded the link to his book, "Sustainable Energy – without the hot air", in a couple dozen different posts over the years, here's the most recent:
"Green economic growth is an article of ‘faith’ devoid of scientific evidence"
....For years when folks wanted to engage me in talk of energy and energy policy I would ask them if they were familiar with David MacKay and had they read his book "Sustainable Energy – without the hot air"
If they had not, I would recommend they read the book and continue our conversation at a later date, MacKay could teach them more in a couple hours than they could glean from me in a couple weeks.
He was more formally known as Sir David John Cameron MacKay Kt, FRS, FInstP, FICE, Regius Professor of Engineering at the University of Cambridge and was Chief Scientific Advisor to the UK Department of Energy and Climate Change. Before he became the first Regius Professor of Engineering at Cambridge he hung his hat at the University's Cavendish Laboratory where 29 people who went on to win Nobel Prizes, mainly in physics but also the odd chemist, had also hung out over the years.
The gist of his book is that the coming transition will not be easy.
The Economist called it a "tour de force", the journal Science "... a cold blast of reality ... a must-read analysis..."You should read it. And there is really no reason not to. Concurrent with it being published, Dr. MacKay put it online on a dedicated website....
