Iron and steel PPI in Japan 2014-2023
In 2023, the producer price index (PPI) for iron and steel in Japan stood at 154.38 index points on average, increasing from 145.58 points in the previous year. The lowest producer price of iron and steel within the preceding decade was in 2016, with a PPI of 85.63 points.
The trade-off for implementing these measures and using sustainable energy had called for a gradual transition. Ironically, the latest price increases in fossil fuels could spur ecological investments - even more than the contested CO2-emission-based premium included in the petroleum and coal tax.
What determines the price of steel products?
Steelmaking requires several raw materials and plenty of energy. Japan has hardly any significant resources to satisfy either demand domestically. Therefore, the country imports iron ore and coking coal, the crucial raw materials needed using blast furnaces. Accordingly, the price depends on the overall energy price and a steady supply – primarily from Australia. For recycling, steel scrap can be added to a certain degree within the conventional process or re-melted in electric arc furnaces. The latter process entails high electricity consumption, making recycled steel of this kind pricy.Carbon-neutral steel: a matter of price
Ample carbon emissions are caused by removing excess carbon left from the carbon-based reduction of the iron oxides. Consequently, one strategy is to adjust steel plants to carbon-neutral reducing agents, such as green or blue hydrogen. Carbon capture, usage and storage (CCUS), still in development, could offset further emissions on top.The trade-off for implementing these measures and using sustainable energy had called for a gradual transition. Ironically, the latest price increases in fossil fuels could spur ecological investments - even more than the contested CO2-emission-based premium included in the petroleum and coal tax.
