ThyssenKrupp to impose a carbon surcharge

German steelmaker ThyssenKrupp plans to implement a carbon surcharge, according to a customer presentation obtained by Argus.

In a slide marked "confidential", the company refers to a carbon price of €45.93/t and says it produces 2.1t of carbon dioxide for every tonne of crude steel, giving it a cost of €96.45/t of crude steel for its total emissions. As it has to buy 20pc of its emissions allowances, this equates to a cost of €19.29/t of steel, a cost that it will look to pass on to customers. Customers confirmed the mill has been proposing a carbon surcharge in negotiations over the past few weeks.

Tata Steel Europe already implemented a €12/t carbon surcharge, recently having increased it to €16/t, while China Steel Taiwan said it would introduce one for 2022.

ThyssenKrupp could not be reached for comment.

By Colin Richardson