The impact of the EU’s “carbon tariff” policy on China’s steel industry is mainly reflected in six aspects.
One is trade. China’s steel enterprises, which mainly focus on long-process steelmaking, will face challenges such as rising steel export costs to the EU, shrinking price advantages, and declining product competitiveness. In the short term, the EU’s “carbon tariff” policy may lead to a decline in China’s steel exports to the EU; in the long run, it can promote the optimization of China’s steel industry and product structure, and reshape the low-carbon competitiveness of product exports.
The second is competitiveness. China’s steel industry mainly meets domestic demand, and has a solid foundation and a broad market. The EU’s “carbon tariff” policy has limited impact on the overall impact of China’s steel industry. However, it will have a certain impact on the competitiveness of China’s steel products exported to Europe, and will form trade barriers to a certain extent, weaken the competitive advantage of China’s steel products, and affect the downstream market demand.
The third is low-carbon development. The EU’s “carbon tariff” policy will promote the basic capacity building of China’s steel industry, carry out research on carbon quota allocation plans, and accelerate the pace of incorporation into the national carbon market; it will help the entire industry to find out the background of carbon emissions, and improve carbon emissions statistics and management capabilities; and It will boost China’s iron and steel to carry out an all-round, wide-ranging and deep-level low-carbon revolution through a market-oriented mechanism, and accelerate the realization of the “dual carbon” goal.
Fourth, the industrial structure. The EU’s “carbon tariff” policy will promote the green and low-carbon upgrade of China’s steel industry technology, especially in the high-carbon emission ironmaking process, the industry and enterprises will pay more attention to the research and development and application of green and low-carbon ironmaking technology, and hydrogen metallurgy technology will become a An important path for deep carbon reduction in the industry in the future. In addition, it will effectively promote the structural adjustment of China’s steelmaking process and promote the further increase in the proportion of electric furnace steelmaking.
Fifth, standards and certification. The EU’s “carbon tariff” policy will increase the demand for Chinese steel companies’ standards for carbon footprint accounting of steel products and evaluation of low-carbon products. At present, China has not issued relevant standards for implementation, and some relevant standards are being formulated. In addition, the downstream industries of China’s iron and steel are also paying more and more attention to the carbon emissions of steel products, and the demand for carbon emission certification of steel products is constantly expanding.
Six is the downstream industry chain. Affected by energy consumption structure, production technology, product trade structure, etc., the implied carbon emissions of trade between China and Europe are highly asymmetric. The EU’s “carbon tariff” policy will increase the cost of China’s steel downstream industry chain and weaken the competitiveness of foreign trade. (China Mining News)
Post time: Jul-14-2022