Steelmakers stood out as a group of stocks that mostly missed Tuesday’s broad rally, and a contributing factor could be the report that the global steel industry can face write-offs of as about $ 518 billion in blocked assets in the coming years because it is still building traditional blast furnaces, as reported Financial Times.
Countries continue to declare new coal-fired power plants, while pushing for lower emissions, according to the Global Energy Monitor, and as a result coal-fired blast furnaces may become unnecessary or inoperable over time. time, leaving the sector with blocked assets worth $ 345B- $ 518B.
Estimates are well above previous estimates that the risk of blocked assets for the industry is up to $ 70 billion.
The global transition from traditional blast furnaces to electric arc furnaces is “too slow” and “dangerously lagging behind” the decarbonisation targets described in the International Energy Agency’s Net Zero Report for 2050, the report said.