The world's largest steel industry strives to be green

China is stepping up efforts to clean up one of the dirtiest corners of its economy and now plans for its giant steel industry to peak emissions within four years.

The country aims to peak carbon emissions by 2025 and cut them by 30% by 2030, the China Metals Planning and Research Institute said in a WeChat message on Sunday, which outlines a draft plan. China also intends to take stricter measures on capacity for producing and replacing crude steel, according to the Economic Information Daily.

Steel accounts for 15% of China's carbon emissions, the largest share among manufacturers, and an important sector that needs to be curbed as the country sets its course for a carbon-neutral economy by 2060. Authorities have already imposed many production restrictions and hacked curb-defying steel mills, mostly in downtown Tangshan, and some industry giants have outlined their plans to cut emissions in the coming decades.

Steel futures rose sharply as China announced a cut in industrial emissions by 2030.

China's environmental policies have boosted steel prices, while optimism about demand for the construction season has been further exacerbated by a tailwind. According to Shanghai SteelHome E-Commerce, rebar stocks fell for the second week last week after more than tripling in 2021.

Hot rolled coil futures in Shanghai rose 1% to the highest level since contract trading began in 2014 and rose 0.8% to 5368 yuan a tonne by 11:30 am local time. Rebar futures have been stable at their highs since February 2011.