Globally, there is unequal competition in steel for CO2 emissions, US Steel Corporation noted.
On the one hand, the company believes that its main integrated competitors in North America and many Europeans face substantially similar environmental regulatory conditions.
Therefore, US Steel does not believe that its relative position vis-à-vis those competitors will be materially affected by the impact of environmental laws and regulations.
However, if future regulations do not recognize the fact that the integrated steel process involves a series of chemical reactions that involve carbon and create carbon dioxide (CO2) emissions without linking these emissions to steel scrap as well, the position US Steel’s competitiveness with respect to minimills could be adversely affected.
On the other hand, the company competitive position compared to producers in developing countries such as China, Russia, Ukraine, Turkey, Brazil and India, will suffer unless those countries require commensurate reductions in CO2 emissions or exist border adjustment fees for CO2.
Competitive materials, such as plastics, may not be similarly affected.
From US Steel’s perspective, the specific impact on each competitor will vary based on a number of factors.
This include the age and location of their operating facilities and their production methods.
The company is also responsible for remediation costs related to past and current operating locations and disposal of environmentally sensitive materials.
Many of your competitors, including North American producers, or their successors, who have been the subject of bankruptcy relief have no or substantially less responsibility for such environmental remediation matters.
In 2021, additional steel-making capacity is expected to enter the domestic market as competitors’ growth projects come online throughout the year.