1. Good morning, distinguished guests and welcome to the Singapore International Ferrous Week. We are privileged to have with us today our Guest-of-Honour Minister Dr. Tan See Leng; as well as our strategic and event partners, and our media friends.
2. While the pandemic has caused great suffering for many people, continued economic growth and trade is essential for global living conditions to continue to improve. There have been some supply chain disruptions but by and large, the financial and commodity markets continue to function seamlessly. Global central banks have all maintained largely accommodative monetary policies and kept interest rates low - this of course, has enabled trade and maintained growth.
3. As many of you know, we have been organising this event for eight years now and your support has propelled it into one of the most important gatherings for the global iron ore and steel industry. Unfortunately, we still have to do this virtually this year, but I strongly believe that next year we will be meeting in person, shaking hands and having drinks together again.
4. This year, we will be building on the success of previous years to make the event bigger, and better. We will be partnering with industry experts Aspermont, Fastmarkets, S&P Global Platts and TradeWinds to bring you the latest in iron ore, and as we move down the steel value chain, to freight and steel.
5. There is no better time for us to come together today as we converge amid structural market disruptions brought upon us by the pandemic. For economies to recover, and to prosper, demand for steel and steel-making ingredients will continue to grow, to support the infrastructure that is needed to power growth.
6. But more so than ever before, we need to bear in mind the industry’s impact on our environment. Through the entire value chain, the steel industry accounts for almost a tenth of global greenhouse gas emissions.
7. The need to tackle climate change has never been greater. Stakeholder expectations are shifting, and it is becoming ever more critical for businesses to balance growth with environmental, social and governance considerations. The wider commodities ecosystem is progressively embracing the sustainability agenda, not least because companies increasingly need to manage climate-related risks.
8. We’ve clearly seen some encouraging progress. While industry players are increasingly exploring new steel-making processes, the full decarbonisation of steel making will be an ongoing journey. In the shipping industry, we are also seeing a gradual shift towards the use of cleaner fuels, as an alternative option to conventional fossil fuels.
9. SGX has launched products in support of the physical market’s switch to “greener” raw materials and inputs into the production process. As an exchange and neutral price discovery hub, SGX will continue providing sustainable solutions, and to engage closely with the market on the evolving demand for risk instruments.
10. This led SGX to become the first Asian exchange to develop a global carbon exchange. CIX will feature carbon credits from various quality nature-based projects globally on its platforms, which corporates can use in their journey to achieve credible decarbonisation and transition.
11. Let us remind ourselves again that growth and sustainability are not a zero-sum game. Combating climate change will require all our efforts to make a meaningful impact to this global problem. This is exactly why forums and events like this are needed to bring together industry experts and business leaders like yourselves, to discuss, debate and collaborate on the many opportunities and challenges confronting us today.
12. I wish you all fruitful discussions in the coming days and I look forward to meeting all of you in person next year. Thank you.
