ThyssenKrupp mulls carbon surcharge

Wednesday, 29 September 2021 14:59:51 (GMT+3)   |   Brescia
       

European companies have to invest in technologies that allow them to reduce pollution, otherwise they are forced to pay more and more to cover their carbon footprint through emission quotas.

For this reason, more and more operators are introducing a carbon surcharge, namely, a carbon or climate extra on their prices. Last April, Tata Steel Europe - when the cost of carbon allowances exceeded €40/mt for the first time ever - announced a surcharge of €12/mt, which it has recently increased to €16/mt. In June this year, Taiwanese steel mill China Steel Taiwan announced a carbon surcharge on export sales with effect from January 2022. Also from next year, Swedish manufacturer Ovako has announced this month that it will apply a carbon surcharge. Soon, ThyssenKrupp may follow suit. According to market sources, the German group has proposed to its customers a carbon surcharge that would amount to slightly less than €20/mt. ThyssenKrupp has mentioned a carbon price of €45.93/mt and said it produces 2.1 tons of CO2 for every ton of crude steel. Since this amounts to €96.45/mt for every ton of crude steel produced and the company has to buy 20 percent of its emissions, the cost that ThyssenKrupp would like to pass on to its customers amounts to €19.29/mt. The news for the moment remains classified as a rumor, but sources expect a public announcement in the coming weeks.


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