Customer requirements and financing will shape the decarbonization of the steel industry, panelists said at Fastmarkets' 2021 Steel Success Strategies Industry Briefing earlier this week.
The steel industry is not shaping decarbonization - instead, external forces are driving it, McKinsey & Co partner Benedikt Zeumer said on Tuesday June 24."Customer requirements will bolster industry to reduce the CO2 footprint, dramatically and very fast," Zeumer said. "The industry has realized it will not take 10 years but they will have to be in the next model cycle, which they are developing.""Financial markets are looking very focused on what companies are doing. There will be a clear perspective also on financing and debt interest, which has to be considered [when determining] whether this is a 'green' company," he said.Since these changes will take time and need to make economic sense, the industry requires funding, Zeumer said. "Even if you have to do these investments, it's very clear that it will be difficult for the industry to really get the funds together," he said, citing high costs for...