Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 59 views

    Goldsmith

    Uploaded by

    Lucas Berti
    The document summarizes key statistics and factors regarding the global steel industry. It discusses the different steelmaking processes, regional production costs and volumes, effects of raw material and energy prices, and trends showing how competition has driven cost reduction and energy efficiency over time. It also outlines the significant regulatory burden on the steel industry from various environmental policies and legislation, and their estimated financial impacts.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Goldsmith

    Uploaded by

    Lucas Berti
    59 views12 pages
    The document summarizes key statistics and factors regarding the global steel industry. It discusses the different steelmaking processes, regional production costs and volumes, effects of raw material and energy prices, and trends showing how competition has driven cost reduction and energy efficiency over time. It also outlines the significant regulatory burden on the steel industry from various environmental policies and legislation, and their estimated financial impacts.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes key statistics and factors regarding the global steel industry. It discusses the different steelmaking processes, regional production costs and volumes, effects of raw material and energy prices, and trends showing how competition has driven cost reduction and energy efficiency over time. It also outlines the significant regulatory burden on the steel industry from various environmental policies and legislation, and their estimated financial impacts.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    59 views12 pages

    Goldsmith

    Uploaded by

    Lucas Berti
    The document summarizes key statistics and factors regarding the global steel industry. It discusses the different steelmaking processes, regional production costs and volumes, effects of raw material and energy prices, and trends showing how competition has driven cost reduction and energy efficiency over time. It also outlines the significant regulatory burden on the steel industry from various environmental policies and legislation, and their estimated financial impacts.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 12

    HLG Ad-Hoc Group 3

    Energy & environment factors affecting the competitiveness of energy-intensive industries Ian Goldsmith

    Steelmaking made simple


    Steel scrap

    Iron Ore Coal/Coke Natural gas Oil Electricity


    Blast Furnace Oxygen Steelmaking Secondary Steelmaking

    Steel scrap
    Coal/Coke Electricity Natural Gas
    Electric Arc Steelmaking Continuous Casting

    Key Steel Industry Statistics


    Steelmaking by process route (2004) 3%

    Steel Production by Region


    (millions of tonnes) 2005 Global 1106 (+/- 2004) (+50)

    EU 25
    USA China

    186
    94 348

    ( -7)
    ( -5) (+72)

    BF/BOS EAF Other

    34%

    63%

    In 2004, over 90% of global steel was continuously cast EU 25*, China, NAFTA, Japan, Korea >95%
    *But, Poland <80%

    Regional steel slab production costs


    ($/t, ex works, 2005, weighted average of regional plants covered)

    324

    316

    311

    300

    260

    252

    227

    EU15

    N America

    Japan

    China

    FSU

    India*

    Brazil

    * Tata, SAIL and Jindal only Sources: WSD

    Raw materials (global effect) and energy (local effect)


    Raw materials (indexed)
    Year 2000 = 100

    Energy prices
    p/therm /MWh

    500

    70

    UK Electricity (RHS) UK Natural gas (LHS)

    60

    50 400 50 40 30

    300

    Coal Scrap
    30 20 10 00 01 02 03 04 05 06
    YTD

    200

    Coke Iron Ore

    100

    Germany Electricity (RHS)


    02 03 04 05 06
    YTD

    10

    01

    Note: Market prices FOB Source: Corus

    Note: UK Wholesale electricity and natural gas forward prices Source: Heren Energy report Exchange rate: /1.50

    Global electricity prices


    (2004 Electricity prices for industrial customers, /MWh)

    102

    Current Price ~70

    Very large industrial customers: ~35

    54

    51

    48

    47

    41

    40

    38

    35 23

    Japan

    UK

    Neth*

    Poland

    Germany*

    US

    France

    Brazil

    Norway

    Russia**

    * Estimated ** 2003 Sources: IEA Energy Prices and Taxes Q4 2005, Datastream, Corus

    Steel is a global industry


    Global steel export volumes 1975-2004
    400 45%

    350

    Exports as % of global production volumes (right hand scale, %)

    40%

    300 35% 250

    Export volumes (left hand scale, mt)

    30%

    200 25%

    150

    100
    19 75 19 76 19 77 19 78 19 79 19 80 19 81 19 82 19 83 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04

    20%

    Source: IISI

    Competition drives cost reduction


    oil injection and burden preparation hot blast temperature >1200 C oxygen enrichment

    800

    Reducing agent consumption (kg/t hot metal)

    top pressure

    600

    theoretical minimum level of carbon demand 414 kg /t hot metal oil

    burden distribution improved sinter quality coal injection

    coal

    400

    200

    coke
    1955 1960 1965 1970 1975 1980 1985 1990 1995 2000

    0 1950

    Competition drives energy efficiency

    Legislation overload
    EU: IPPC Directive EU Emissions Trading Scheme Packaging & Packaging Waste Directive Landfill Directive Trans-frontier Shipment of Waste Regulations Waste Framework Directive EU Polluting Emissions Register Air Quality Directives National Emissions Ceilings Directive Large Combustion Plant Directive Water Framework Directive REACH ELV Directive WEE Equipment/RoHS Directives Energy Using Products Directive

    UK: Environmental Protection Act 1990 (Contaminated Land Regulations) Landfill Tax Hazardous Waste Regulations Producer Responsibility (Packaging) Climate Change Levy

    Renewables Obligation
    Air Quality Objectives

    Impact of Environmental Policy

    Electricity prices and EUETS allowance prices are related

    Estimated effect of EU ETS on UK electricity prices is over 25% of the increase since 2004 UK electricity companies have increased profits by ~800m/year
    (Source: IPA report for UK Government Nov 2005)

    Examples of effect on Corus UK Renewables Obligation = 9m in 2006 (by 2010 this will be over 13m) UK Climate Change Levy = 6m (index linked from 2007) EU ETS >20m (Including energy cost increases plus administration, verification etc)

    You might also like