October 17, 2022 – Asian stainless steel spot and futures prices rise early in the week. And China wants to focus its economy even more on the transition to CO2 neutrality.
Futures and spot prices of stainless steel on the rise
Stainless steel futures on the SHFE rose around 1.78% in Monday trading. Meanwhile, Asian stainless steel spot prices also rose as much as 2.2%, according to the source.
China’s transition to a green economy
One of Chinese President Xi Jinping’s central themes at the current party congress was the transformation of domestic industry towards a more sustainable and environmentally friendly economy. For the country’s steel industry, for example, the massive conversion of old production capacities to more modern and greener factories had already started in 2021.
Chinese energy already 45% renewable
According to its own statements, China wants to become CO2 neutral by 2060 and peak emissions by 2030. At least according to official data and statistical surveys, China had already generated almost 45% of its total energy production from renewable energies. sources in 2021. In 2022, an additional 156 gigawatts (GW) of wind and solar power are to be added.
Greener environment, more economic freedom
The focus on greener economic policy is hugely important, not just for China itself, where there has been massive overexploitation of the environment in recent decades. This change is probably also due to the efforts of Western countries to establish new punitive and protective tariffs at the EU’s external borders with new market protection mechanisms, such as the European Carbon Border Tax (CBAM), and in especially to put pressure on Asian states like China. CBAM’s ulterior motive could therefore soon fall on some people’s toes.
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