LME WEEK 2021: Ferro-chrome sector signs up to decarbonization agenda

The ferro-chrome market is facing growing pressure to decarbonize from downstream, with the need to cut carbon emissions becoming increasingly accepted among producers, traders and consumers.

Alloys are not currently included in the Carbon Border Adjustment Mechanism (CBAM) - the European Commission's flagship policy to lower carbon emissions and defend domestic industries such as steel from external producers that do not need to allow for their emissions.
But upstream emissions for imported goods could also be added with products included in CBAM via amendments of the proposal through the European parliament and council, according to market sources.
This could potentially allow the inclusion of ferro-alloys including ferro-chrome, according to industry sources, who anticipate the scope of CBAM will be widened.
At present, the pressure for lower emissions in the ferro-chrome market comes from the wider decarbonization agenda, rather than CBAM itself. But CBAM will put more pressure on companies further up the supply chain.

Direct emissions (known as scope 1 in CBAM documentation) from steel are included in the current CBAM scheme. This means steel importers...

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