China to tighten steel output controls to achieve ultra-low emissions

The renewal of China’s steel industry as part of the ultra-low emission reform makes sense only if steel production is under reasonable control. This was stated by Luo Tiejun, vice president of the China Iron and Steel Association (CISA), SteelOrbis reports.

China will strictly control the newly expanded steel capacity, and as the country’s steel consumption has entered the peak zone, a production cut is inevitable.

According to the association, as of mid-December 2023, 110 steel producers in the country have completed or partially completed ultra-low emission modernization and monitoring assessments, 84 of which have completed public notification of full modernization, covering about 414 million tons of steelmaking capacity.

In total, steel production facilities that went through the public notification procedure accounted for more than 50% of their total number.

In addition, Luo Tiejun emphasized that CISA will strongly oppose the indiscriminate promotion of ultra-low emissions by layering additional standards. According to the association, investments in ultra-low emissions in the country’s steel industry amount to 450 yuan per ton ($63.4), while operating costs are about 200 yuan per ton ($28). According to a representative of the industry association, steelmakers need to balance the relationship between the economy, environment and sustainability, as well as maintain the industry’s competitiveness in the global market.

As GMK Center reported earlier, China will accelerate the decommissioning of obsolete steelmaking facilities. In addition, the blind launch of projects with high energy consumption and high emissions will be stopped. The country will continue to encourage the development of electric arc furnace (EAF) steel production to reduce carbon emissions. According to the plan, their share should be 15% of the total by 2025.