Ruling party of Democratic Party of Japan finalized meeting on Wednesday to make system for purchasing energy from renewable sources at fixed rate without relief for heavy power consuming sectors including electric furnace steel makers. The bill includes clause for needed revision in every 3 years to modify the system. Japanese Cabinet would approve the bill on March 11. The system burdens Japanese steel industry, mainly for electric furnace steel makers while Ministry of Economy, Trade and Industry plans to support energy consuming sectors through subsidy for investment in energy-saving facilities and development.
Ruling party confirmed the government should be careful to secure international competitiveness for energy consuming sectors. The bill includes clause for potential termination of the low as early as by fiscal 2020 ending March 2021. Japanese steel industry bodies oppose the energy purchasing system when the burden, which could reduce electric furnace steel makers’ recurring profit by around 40%, would jeopardize the business continuity.M | T | W | T | F | S | S |
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Japan Steel Scrap Composite Prices (Sangyo Press)
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