Steel production output is expected to be up by 2.2% year on year in 2014, according to figures released by European steel lobby EUROFER on Friday. The new forecast rise in production from the sector would contribute to the need for steel companies to buy EUAs from the market.
The output is forecast to start rising in the fourth quarter this year, having been 1.1% lower year on year in the third quarter.
The steel sector is expected to have a shortage of allowances of 10% on average, a EUROFER spokesman said last week.
Already the best performing steel firms will have to buy allowances due to high emissions reduction targets, the spokesman added. Ben Lee