China decided to relax environmental protection restrictions on the steel industry and extended the period of carbon emissions to increase by 5 years. The iron ore price broke the US$150 per ton barrier on the 8th.
MINING.com and Seeking Alpha reported on the 8th that steel manufacturing accounts for about 15% of China’s carbon emissions. The Beijing government announced on Monday that the deadline for the steel industry to peak carbon emissions has been extended from 2025 to 2030.
Xu Xiangchun, an analyst at research firm Mysteel, pointed out that the sharp adjustment to the timetable has given the steel industry more breathing space and the process of peaking carbon emissions will not be out of order. He said rushing to meet carbon targets could result in “an unbearable economic cost”.
Fastmarkets MB quotations show that the quotation of iron ore with 62% iron content imported to northern China reached US$149.64 per ton on the 8th, a new high since August 31, 2021, and has rebounded by more than 70% from the bottom in November 2021. . Singapore iron ore futures rose as much as 3.8% to $153 a tonne on the 8th, hitting a new high since August 31, 2021.
Li Shuo, an analyst at Greenpeace East Asia, warns that after Beijing’s policy turns, China may not be able to reach its 2030 carbon emission peaking target, because traditional production such as steel must peak ahead of time to make room for other still-developing industries such as transportation. Extra discharge space.
It is worth noting that China’s National Development and Reform Commission said on the 9th that it has warned information providers not to expose fake iron ore quotations, and vowed to maintain market stability. This prompted quotes to fall back. Singapore iron ore futures slid to around $144 a tonne earlier on the 9th from $153 on the 8th.