An association of electric arc furnace steel producers has been established in China

At the end of February 2025, the China Steel Association CISA officially established the Electric Arc Furnace Steel Producers Association (EAFSA) in Shijiazhuang, Hebei Province. This event marks an important step in the development of sustainable steel production in China and the transition to more environmentally friendly production methods, NENG said in a statement.

The electric arc method of steel production has long been less competitive due to its higher cost and limited availability of raw materials, especially ferrous scrap. Today, EAF capacity in China is about 200 million tons, but actual production is much lower. The share of EAF steel in the country reached 10.7% in 2021, but by 2023 it dropped to 9.7%, which is far behind world leaders such as the United States (70%), Europe (50%), and Japan (30%). This is also less than the target set in the 14th Five-Year Plan, which is 15%.

At the meeting, CISA Vice President Luo Tiejun emphasized the growing importance of steel EAF for the Chinese steel industry, noting that this method not only helps to balance supply and demand but also helps to reduce carbon emissions in the face of new environmental requirements. The association aims to address these issues through three main areas: developing an effective organizational structure, ensuring the implementation of decisions, and promoting the use of scrap.

Hebei, as one of the largest steel provinces in China, is also actively working to develop low-carbon steel projects. Song Xiangdang, Deputy Director of the provincial Department of Industry and Information Technology, presented strategies to shift to high-value steel production, accelerate digitalization, and promote high-quality steel development based on the EPD.

Government representatives, including Wen Gang from the Ministry of Industry and Information Technology, recognized the achievements in the development of steel EDP, but emphasized the need to strengthen policies, invest in the latest technologies, and develop digital solutions to improve efficiency. Zhao Chunli from the Ministry of Ecology and Environmental Protection emphasized the importance of accelerating the transition to ultra-low emissions and supporting steel EE as a greener alternative method.

Increasing the share of environmentally friendly steel is part of China’s strategy to become a global leader in low-carbon steel production and modernization of heavy industry. The establishment of the Association is an important step in reforming the steel industry and preparing for global environmental challenges.

As GMK Center reported earlier, in 2024, China reduced steel production by 1.7% year-on-year, producing 1.005 billion tons. This is the lowest figure in the last five years. Experts note that 2024 is likely to be the last year when steel production in the country exceeded 1 billion tons.