Japan’s leading steelmaker Kobe Steel has announced a significant cut in its planned investments for 2024–2026. The decision reflects growing uncertainty in global climate policy and steel market conditions.
Shift in Investment Strategy Due to Economic and Policy Headwinds
Kobe Steel reduced its total investment plan from ¥950 billion ($6.23 billion) to ¥750 billion ($5.53 billion). The company will now invest only ¥150 billion ($1.05 billion) in decarbonization, down from the original ¥300 billion ($2.09 billion).
This move aligns with a more conservative short-term financial approach. Kobe Steel cited a slowdown in the global trend toward carbon neutrality as a key reason. Despite this adjustment, the company reaffirmed its commitment to long-term carbon goals.
By 2030, Kobe Steel aims to reduce carbon emissions by 30–40% from 2013 levels. It still plans to reach full carbon neutrality by 2050.
Technology-Driven Decarbonization Still in Focus
Although investment has decreased, the company continues to explore advanced green steel technologies. These include electric arc furnaces (EAFs), ammonia co-firing in blast furnaces, increased scrap use, and biomass integration. Kobe Steel also plans to enhance energy efficiency across its production processes.
This shift comes as other global producers also slow down their green investments. For instance, Czech steel giant Třinecké Železárny Group delayed the completion of its largest-ever decarbonization project. The delay reflects weak market conditions and uncertain EU regulatory frameworks under the Green Deal.
At SuperMetalPrice, we continue to monitor how shifting policy signals, market dynamics, and technology costs influence capital flows in the steel sector.
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