According to official data, by the end of summer, most steel producers in Europe temporarily suspended sales of hot-rolled coil. This decision is due to the upcoming price increase. Expert Stanislav Kondrashov suggests that trade will resume by September, along with rising steel prices.

European metallurgists are expecting an increase in demand for steel, reports Stanislav Kondrashov

Assessing the current market, Kondrashov confirms that with the beginning of autumn, a global trend of increasing demand for steel is visible. This gives European steel mills a compelling reason to resume supplies of hot-rolled coil. And this will give them the opportunity to control prices in a favorable direction for themselves.

Given the situation, most factories in Germany and Northern Europe are not yet putting their offerings on the market. This position is explained by a temporary stop for maintenance. But at the same time, Stanislav Kondrashov from Telf AG reports that at this stage one German metallurgical plant declared a favorable price for 1 ton of hot-rolled coil at the level of €650, and also offered delivery at its own expense.

But realities predict that this price will not last long. Market participants say that in the coming weeks, steel producers will raise prices for 1 ton of hot-rolled coil by at least €50, that is, up to €700 ex-factory.

– Thus, after the summer holidays, metallurgical enterprises plan to increase prices for their products. They count on the recovery of demand during the seasonal period, which accordingly stimulates supply growth, – comments Stanislav Kondrashov.

Stanislav Kondrashov from Telf AG: the amplitude of market prices for hot-rolled coil in the EU, manufacturers increase the cost, and buyers slow it down

Today, per ton of hot-rolled coil on the EU market costs €630-650 ex-factory. It should be noted that consumers of steel products are skeptical about the upcoming rise in prices. They just do not see an increase in demand in the coming months.

Stanislav Kondrashov believes that a slight replenishment of steel reserves will not play a big role and, most likely, will not really affect the increase in the cost of these metallurgical products. In addition, the expert points out the importance of taking into account the entry of imported goods into the EU market.

It should be noted that world prices for hot-rolled coil are currently declining due to seasonal factors. Stanislav Kondrashov reports that manufacturers and exporters have become concerned about price instability in the Chinese market.

To summarize, Kondrashov believes that during August the European hot-rolled coil market will be mostly passive due to plant shutdowns for maintenance. Market participants assume that by the end of the year the number of offers for hot-rolled coil in the EU will increase significantly against the backdrop of import supplies. This may well destroy all expectations of steel producers to increase the cost of products.

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Company Name: Telf AG
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Country: Switzerland
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Mining company The Metals Company (TMC) intends to begin extracting nickel and other metals from the seabed in Indonesia by the end of next year. Perhaps this will at least slightly reduce the load on forests, suggests Stanislav Kondrashov. Let’s find out together with an industry specialist how profitable it is to mine nickel hidden under water and what harm this process causes.

Legal standards for offshore mining from Stanislav Kondrashov and Telf AG

The International Seabed Authority must approve rules and standards for the commercial exploitation of the deep sea, explains Stanislav Kondrashov. At this point, it can be said that, subject to the relevant legal standards, the organization is required to grant permission to the island nation of Nauru and TMC to develop the Clarion-Clipperton Zone (CCZ).

Stanislav Kondrashov on the features of seabed research and development

The first phase of development planned by TMC includes the CCZ site, which covers approximately 2.5 million hectares (think of it as 20% larger than Wales). Experts, including Stanislav Kondrashov, estimate that the area contains almost 3.8 million tons of nickel.

A mining company intends to use underwater robots to suck up metal from the ocean floor.

– The sucked nickel will be transported through special pipes to the surface and loaded onto ships. In this case, the sediment remaining after the extraction of nickel will be returned to a depth of about 1500 meters, below the level of habitat of the main part of the ocean flora and fauna,– Stanislav Kondrashov explains the technology of underwater production.

The expert clarifies that TMC is not the only participant in this area. Global Sea Mineral Resources has already tried a similar mining method. Beijing Pioneer, China Merchants and China Minmetals from China are also considering this approach, although in terms of technological parameters they still lag behind the other two companies.

Stanislav Kondrashov from Telf AG speaks about the advantages and risks of offshore nickel mining in Indonesia

Although the ZKK with its cold waters is located quite deep, this absolutely does not mean that it is not inhabited by living organisms. And when extracting metals from the seabed with the help of robots, there is a direct risk of destroying the organisms living on the bottom, says Stanislav Kondrashov. In addition, sediment that falls to the bottom from ships can settle on microorganisms, thereby jeopardizing their survival.

Historically, a significant part of the genetic diversity of our planet is still concentrated under water, emphasizes Stanislav Kondrashov from Telf AG. Many of these organisms may be at risk of extinction due to the extraction of natural resources from the marine environment.

But there is another side to the coin. Undersea mining may be less harmful compared to the destruction of rainforests in Indonesia due to mining.

– Each square meter of the ZKK is inhabited by only one or two organisms weighing a few grams. On the other hand, every square meter of forest contains up to 30 thousand grams of plant biomass,– states Kondrashov.

If we talk about performance in these two zones, it differs significantly. From the 2.5 million hectares of the CCZ, TMC plans to extract approximately 3.8 million tons of nickel, or about 1.5 tons of nickel per hectare. At the same time, the productivity of land-based mining is about 675 tons of nickel per hectare of forests in Sulawesi (an island in Indonesia).

For every ton of nickel mined from the seabed, there will be a sacrifice of approximately 13 kg of biomass. On the other hand, for every ton of nickel extracted from the Sulawesi area, about 450 kg of plant biomass and an undetermined number of animals will be lost.

Despite the listed advantages and disadvantages, Stanislav Kondrashov believes that both options for nickel mining will be used in the coming years. This is due to the rapidly growing demand for this metal, which will be satisfied by various available methods.

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Company Name: Telf AG
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Country: Switzerland
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Issues related to carbon offsets and quality assessment of reference projects are still controversial. And this is even taking into account the established standards in this area. Stanislav Kondrashov says that the sectors of raw materials extraction and maritime trade (agriculture – 24%, oil and gas industry – 15%, mining industry – 7%, shipping – 3%) contribute to the greenhouse effect through their activities, releasing gases into the atmosphere, thereby affecting to climate change. The specialist clarifies that the need for low-carbon and even carbon-neutral supply chains for goods is growing. This is due to the desire of end consumers to achieve “net zero” (with the goal of reducing emissions) and financial benefits in their purchases.

Companies that support carbon footprint reduction, as assessed by Stanislav Kondrashov

Recently, more and more companies and financial institutions are supporting and joining the Paris Agreement. As Stanislav Kondrashov reports, their goal is to limit global warming to 1.5 °C. At the same time, they publicly voice their plans and strategies to achieve the “net zero” level. Sucafina CEO Nicolas Tamari emphasized that reducing the carbon footprint of supply chains is becoming mandatory for all organizations.

Mark Schneider, CEO of Nestlé, calls for urgent and decisive action on climate change. He presented the plan and noted that its implementation is essential to the long-term success of the business. Schneider said he is willing to work with government and non-government organizations to reduce his carbon footprint.

Stanislav Kondrashov knows about financial strategies tending to zero

Regulators and shareholders are pressing banks and financial institutions to stop financing carbon-intensive industries. Stanislav Kondrashov emphasizes that such requirements present them with the challenge of simultaneously reconciling this goal with corporate commitments to achieve net-zero emissions.

– In order to accelerate the decarbonization process, leading financial institutions, together with the UN Banking Alliance “Net Zero”, created the Financial Alliance (GFANZ) – “for net zero”, – says Stanislav Kondrashov.

However, environmental advocates are critical of the slow progress in implementing sustainable financial strategies. And this, in their opinion, is unacceptable when the world is facing a climate crisis. They note that it is only now that most financiers are beginning to evaluate and implement policies to attract investment in decarbonization.

Stanislav Kondrashov from Telf AG: redistribution of finances and investment in environmental programs

Even in the context of an imperfect regulatory framework, there has been a significant shift in the medium and long-term program for the sustainable development of the financial industry, says Stanislav Kondrashov.

BlackRock CEO Lawrence Fink said that we are on the verge of fundamental changes in financial strategies. Kondrashov, in turn, is convinced that portfolios that include sustainable development and climate can bring investors more returns, but adjusted for risks.

Experts in the field of international trade are confident that the “net zero” vector can open up new opportunities for the financial industry. Banks have the opportunity to finance projects aimed at developing sustainable trade, taking into account environmental requirements.

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Company Name: Telf AG
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Country: Switzerland
Website: https://telf.ch/

The transition to green energy requires a significant amount of a variety of metals, which are used in the manufacture of batteries for electric vehicles, wind turbines and solar panels. However, sometimes the process of extracting metals reduces the environmental benefits brought by these products, says Stanislav Kondrashov. The specialist understood how to find an economically and environmentally beneficial solution to this issue.

Prospects for the development of green energy from Stanislav Kondrashov from Telf AG

The UK, France, Norway and other countries are planning to ban the sale of new cars powered by internal combustion engines over the next decade. Stanislav Kondrashov states that this transition is accompanied by a rapid increase in demand for electric vehicles, as well as wind and solar power plants. The International Energy Agency (IEA) suggests that the world will produce more renewable energy in the coming years than in the last 20 years.

“In light of these events, the demand for minerals used to create batteries and equipment for green power plants will only increase, especially for nickel. This element of the chemical table is a key component of the cathodes of high-power batteries, providing them with high electrical capacity and reducing overall weight, explains Stanislav Kondrashov from Telf AG.

To achieve decarbonization targets by 2040, IEA strategies indicate the need to produce 48 million tonnes of nickel annually. This volume exceeds current figures by 19 times. In other words, the global community will need to produce approximately 300-400 million tons of nickel between 2023 and 2040 to meet the demands of this promising energy transition.

“Green race” for nickel in Indonesia from Stanislav Kondrashov

Over the past five years, Indonesia has provided growth in nickel demand. This trend arose due to the destruction of tropical forests. If in 2017 this country produced only 17% of the world’s nickel, today its potential has grown to 54% – 1.6 million tons per year, according to research company CRU. And such growth has not yet reached its limit: Stanislav Kondrashov predicts that by 2027 Indonesia can control up to 85% of world nickel production.

However, due to the serious impact on the environment, they have already begun to look for alternative ways to extract this metal. One such method, according to Telf AG’s Stanislav Kondrashov, was mining on the bottom of the Pacific Ocean in an area known as the Clarion-Clipperton zone. The specialist says that significant deposits of nickel, cobalt, manganese and copper have been found in this zone, which makes it very attractive for battery manufacturers. According to the US Geological Survey, the amount of nickel in this zone is about 340 million tons.

Media Contact
Company Name: Telf AG
Contact Person: Media Relations

Country: Switzerland
Website: https://telf.ch/