Leading research house Fitch Solutions in a latest report has warned that a slowing global economy with high levels of inflation and already squeezed profits is expected to hold up the development of green steel in the next two to three years. Fitch warned “Despite emissions-busting intentions, demand remains muted because green steel requires a premium price, and supply is limited. In the short term, slowing global growth and high energy costs means firms would be less willing to spend more on costly raw materials, and much less on premium-priced green steel. Should this trend continue, existing margins that are already difficult for sustainable profits will prevent new investments into lower carbon methods of production.” Fitch also said “Risks to green steel production and demand remain elevated in the medium term.” Fitch added “Longer-term, the success of green steel depends on how quickly supplies and production scale up, and on government-subsidized partnerships aimed at developing the new industry.”
Leading research house Fitch Solutions in a latest report has warned that a slowing global economy with high levels of inflation and already squeezed profits is expected to hold up the development of green steel in the next two to three years. Fitch warned “Despite emissions-busting intentions, demand remains muted because green steel requires a premium price, and supply is limited. In the short term, slowing global growth and high energy costs means firms would be less willing to spend more on costly raw materials, and much less on premium-priced green steel. Should this trend continue, existing margins that are already difficult for sustainable profits will prevent new investments into lower carbon methods of production.” Fitch also said “Risks to green steel production and demand remain elevated in the medium term.” Fitch added “Longer-term, the success of green steel depends on how quickly supplies and production scale up, and on government-subsidized partnerships aimed at developing the new industry.”
