Presentation is loading. Please wait.

Presentation is loading. Please wait.

ThyssenKrupp Steel Prof. Dr.-Ing. Dieter Ameling Senior Counselor ThyssenKrupp Steel former President German Steel Federation former Chairman Steel Institute.

Similar presentations


Presentation on theme: "ThyssenKrupp Steel Prof. Dr.-Ing. Dieter Ameling Senior Counselor ThyssenKrupp Steel former President German Steel Federation former Chairman Steel Institute."— Presentation transcript:

1 ThyssenKrupp Steel Prof. Dr.-Ing. Dieter Ameling Senior Counselor ThyssenKrupp Steel former President German Steel Federation former Chairman Steel Institute VDEh European Steel in a Globalized Market ABMs 63rd Annual Congress July 28 – August 1, 2008 Santos – SP - Brazil

2 ThyssenKrupp Steel European Steel in a Globalized Market Steel in a globalized environment Raw materials – short and expensive European steel industry – sustainable, innovative and competitive Steel and the energy and climate policy of the EU EUROFERs proposal to reduce the steel industries CO 2 -emissions worldwide

3 ThyssenKrupp Steel Stahl-Zentrum Explosion of World Crude Steel Production and Continuous Casting

4 ThyssenKrupp Steel Stahl-Zentrum The European Union – 27 Member States

5 ThyssenKrupp Steel Stahl-Zentrum The Ranking of Gross Domestic Product (GDP) by Actual Prices 2006

6 ThyssenKrupp Steel EU 27: No. 2 in World Crude Steel Production

7 ThyssenKrupp Steel The Top 10 Steel Producers in the EU 27,

8 ThyssenKrupp Steel Stahl-Zentrum, World Trade in Steel Excludes internal trade within the EU 25 Source: ISSB

9 ThyssenKrupp Steel Stahl-Zentrum, Source: ISSB Main Regional Steel Trade Flows (2007) China No. 1 Steel Exporter EU 27 No. 1 Steel Importer

10 ThyssenKrupp Steel Stahl-Zentrum China: Imports and Exports Steel Mill Products up to May 2008 and forecast 2008

11 ThyssenKrupp Steel Stahl-Zentrum, Total export volume : 68,3 Mill. t Asia total: 52,7 % EU 27: Chinas Export Target No. 1 outside Asia in 2007 Source: Trade Statistic German Steel Federation

12 ThyssenKrupp Steel Stahl-Zentrum, Actual Antidumping Complaints of EUROFER No. 1 against EU 27 hot dipped coated sheet imports from China andNo. 2 EU 27 stainless cold rolled sheet imports from China, Korea, Taiwan No. 3 EU 27 wire rod imports from China and Turkey Source: official EU trade statistic (Eurostat) with own calculations Str 28Mrch08

13 ThyssenKrupp Steel Stahl-Zentrum Fiscal development aid Preferential Loans and Direct Credit Governmental regulation of production and external trade Support of individual companies Free or cheapened electric power supply Land grants Governmental support of developments of raw material sources Disregarding of environmental and occupational safety standards Subsidized freight rates The Influence of the Chinese Government on the Industry

14 ThyssenKrupp Steel Stahl-Zentrum Blast Furnace in China Source: GEO 11/2007

15 ThyssenKrupp Steel Stahl-Zentrum Source: GEO 11/2007 Coking Plant in China

16 ThyssenKrupp Steel European Steel in a Globalized Market Steel in a globalized environment Raw materials – short and expensive European steel industry – sustainable, innovative and competitive Steel and the energy and climate policy of the EU EUROFERs proposal to reduce the steel industries CO 2 -emissions worldwide

17 ThyssenKrupp Steel Price Development of Iron Ore and Coal

18 ThyssenKrupp Steel Overseas Iron Ore Exports of the 10 Largest Exporting Companies in 2006

19 ThyssenKrupp Steel Stahl-Zentrum a.Worldwide turnover of all joining companies with more than 5 Billion EUR and Rio Tinto: 22 Billion $ (2006), BHP: 39 Billion $ (2007) b. turnover in the EU of at least two joining companies with more than 250 Million EUR each and Rio Tinto: 3,9 Billion $ (2006), BHP: 11 Billion $ (2007) c. the joining companies shouldnt have a share of more than 2/3 of their turnover within the same member state. ( ) We require an intervention of Brussels to stop the merger of BHP and Rio Tinto! Conditions for the Application of the EC Merger Regulation

20 ThyssenKrupp Steel Prices for Hot Metal, DRI and Scrap again on a Record High

21 ThyssenKrupp Steel European Steel in a Globalized Market Steel in a globalized environment Raw materials – short and expensive European steel industry – sustainable, innovative and competitive Steel and the energy and climate policy of the EU EUROFERs proposal to reduce the steel industries CO 2 -emissions worldwide

22 ThyssenKrupp Steel Stahl-Zentrum

23 ThyssenKrupp Steel Stahl-Zentrum Indicators of Sustainable Steel

24 ThyssenKrupp Steel Stahl-Zentrum Reducing Agents Consumption of Blast Furnaces in the World, 2006

25 ThyssenKrupp Steel Stahl-Zentrum Energy Efficiency and CO 2 -Emissions of the German Steel Industry

26 ThyssenKrupp Steel Stahl-Zentrum Innovations for the Future

27 ThyssenKrupp Steel Stahl-Zentrum Climate Change – Steel is the best Choice Steel – driver of innovations to increase efficiency of resources

28 ThyssenKrupp Steel Stahl-Zentrum Climate Change – Steel is the best Choice Steel – driver of innovations to increase efficiency of resources

29 ThyssenKrupp Steel European Steel in a Globalized Market Steel in a globalized environment Raw materials – short and expensive European steel industry – sustainable, innovative and competitive Steel and the energy and climate policy of the EU EUROFERs proposal to reduce the steel industries CO 2 -emissions worldwide

30 ThyssenKrupp Steel Stahl-Zentrum The plan calls for a: These targets are very ambitious: today 8.5% of energy is renewable. To achieve a 20% share by 2020 will require major efforts across all sectors of the economy and by all Member States is the new basis for all calculations within the framework of this package. 20% increase in energy efficiency 20% reduction in greenhouse gas (GHG) emissions 20% share of renewables in overall EU energy consumption by % biofuel component in vehicle fuel by 2020 Renewable Energy and Climate Change Package of the European Commission of :

31 ThyssenKrupp Steel GHG Target: -20% compared to % compared to 2005 EU ETS -21% compared to 2005 Non ETS sectors -10% compared to Member State targets, stretching from -20% to +20% Source: European Commission, DG Environment

32 ThyssenKrupp Steel Stahl-Zentrum The Energy and Climate Package drastically Reduces the Crude Steel Production within the EU % CO 2 reduction from 2005 to Specific CO 2 -emissions could decrease from 1.7 to 1.56 t CO 2 /t steel 3.Compared to expected steel production in 2020 of 236 Mt this would only allow a reduced steel production of Mt = Mt = % Steel

33 ThyssenKrupp Steel Stahl-Zentrum For the energy-intensive industries sufficient allowances are indispensable to prevent relocation to outside Europe: 1. The needed certificates have to be allocated free of charge. The foreseen auctioning would lead to a massive loss in international competitiveness. 2. A general sectoral CO 2 reduction target of 21 % cannot be fulfilled by the steel industry. The energy-intensive industries are characterised by process related emissions. Today, they are working at the minimum level. 3.Further electricity price increases through auctioning obligation for power producers cannot be borne in the international competition. 4.Industry needs investment certainty. Clear decisions must be made. Otherwise investments would be stopped, which would result in a lack of competitiveness as well. The Energy and Climate Package of the European Commission of Drives the Industry Away

34 ThyssenKrupp Steel Stahl-Zentrum The Global Energy Related CO 2 Emissions are further Increasing The Measures of EU 27 without any realistic Effect

35 ThyssenKrupp Steel Stahl-Zentrum CO 2 Emissions Trading in the European Union – Does it make Sense?

36 ThyssenKrupp Steel European Steel in a Globalized Market Steel in a globalized environment Raw materials – short and expensive European steel industry – sustainable, innovative and competitive Steel and the energy and climate policy of the EU EUROFERs proposal to reduce the steel industries CO 2 -emissions worldwide

37 ThyssenKrupp Steel Stahl-Zentrum Disadvantages of the Existing Emissions Trading System Absolute caps are equivalent to caps on production and lead to relocations to outside the EU. The reduction targets are set top down and are not consistent with technological reduction potentials. Because the emissions trading directive does only refer to direct emissions the reduction potentials of the steel industry are not addressed adequately. The pricing-in of allowances which were allocated free of charge as well as auctioning lead to inadequate increases of electricity prices.

38 ThyssenKrupp Steel Stahl-Zentrum Main Characteristics of the Baseline and Credit System An ETS tailor-made for the steel industry. Emissions are determined in an integrated way taking into consideration all stages of production. Inputs like coke or electricity or credits resulting from using by-products do also count. The average amount of European emissions serves as a basis for the allocation of allowances. The scheme brings about continuous improvement in terms of efficiency: The average amount of European emissions serving as a reference for allocation, incentives for emission cuts are created what directly impacts on the average emissions amount ("moving target"). Ex-post-allocation taking account of the production quantity instead of absolute emissions ceilings.

39 ThyssenKrupp Steel Stahl-Zentrum Facts about the Emissions Trading System for Steel

40 ThyssenKrupp Steel Stahl-Zentrum Advantages of the Baseline and Credit System Existing technological reduction potentials, but also the limits concerning process emissions are regarded. The system results in continuing efficiency improvements because the orientation to the emission average gives incentives to reduce emissions. This influences the emission baseline (moving target). Production growth is not constrained. The baseline and credit emissions trading system targets only at efficiency. No incentives for relocations of production to outside the EU. The system is more attractive for states outside the EU and their steel industry.

41 ThyssenKrupp Steel Stahl-Zentrum European Steel in a Globalized Market Summary European Steel in a Globalized Market Summary The world steel production continuous to grow. EU 27: No. 2 in world crude steel production China became the No. 1 steel exporter in Raw materials remain short and expensive. European steel industry – sustainable, innovative and competitive The Energy and climate package of the European Commission of drives the industry out of Europe. The only solution is a sectoral approach.


Download ppt "ThyssenKrupp Steel Prof. Dr.-Ing. Dieter Ameling Senior Counselor ThyssenKrupp Steel former President German Steel Federation former Chairman Steel Institute."

Similar presentations


Ads by Google