China's steel industry prepares for the low-carbon era

In late September, Chinese President Xi Jinping surprised the world by announcing a very ambitious plan to reduce the country's carbon emissions by 2060. In the three weeks since then, I have received a growing number of inquiries from steel industry insiders asking how the Chinese steel industry will adapt to the low-carbon era.

The senior official at the Beijing House of Steel Trading I approached for comment was honest in his response. “This is such a big and new topic, to be honest, I have no idea where it will lead the Chinese steel industry,” he replied via WeChat.

He Wenbo, executive chairman of the China Iron and Steel Industry Association (CISA), elaborated on this topic at a recent industry event. “In the future, the steel industry will not face 'relative control' over carbon emissions, but 'absolute control' and where it fits into China's low-carbon economy,” he said. "But wherever it is, finding an environmentally friendly, low-carbon course in the development of the steel industry is paramount and imperative."

He stated that among the few key factors that will guide the industry towards improving quality were ongoing efforts to eliminate excess steel production capacity, further installation of (low-emission) electric arc furnaces, and increased technological and innovative research.

Recently, overseas steel mills - especially some in Europe - have been discussing and testing hydrogen as an energy source in steelmaking as a solution to the carbon footprint. "It's a great vision," a Beijing steel analyst frankly admitted, "but it's still far from reality in China."

In the post-COVID era, green steel production is at the core of the quality development of Chinese industry. So far, more than 200 steel mills in 22 provinces have embarked on low-carbon clean-ups and upgrades, but “this will be a process that will gradually intensify over a long period, not a short-term achievement,” CISA said. He pointed out.

The Chinese government has publicly announced that it is aiming to peak carbon emissions by 2030 and then neutralize carbon by 2060, and in the country's steel industry, the manufacturing sector responsible for generating the most carbon emissions, the pressure can be imagined.

In addition to existing efforts, China should develop its own steel recycling