Global steel capacity is increasing through coal-based production, primarily driven by expansion in China and India. This trend threatens net-zero targets and risks creating stranded assets as the industry lags in adopting Electric Arc Furnaces and green hydrogen technology. New regulatory pressures, such as the EU's Carbon Border Adjustment Mechanism, are expected to penalize high-carbon imports. The transition to green steel remains hindered by the high cost of electrolyzers and the need for massive renewable energy infrastructure to make hydrogen competitive.
