Steel production must be kept within reasonable bounds in order for China’s steel industry to be revitalised as part of the ultra-low emission reform, according to Shree Metal Prices, this was stated by Luo Tiejun, vice president of the China Iron or Steel Association (CISA).
China will closely regulate the recently increased steel capacity. And since the nation’s steel consumption has reached its peak, an output reduction is unavoidable.
As of mid-December 2023, 110 steel producers in the nation had either finished or were in the process of finishing ultra-low emission modernization and monitoring assessments; 84 of them had finished notifying the public of full modernization, encompassing approximately 414 million tonnes of steelmaking capacity. This information is provided by the association.
More than half of the total number of steel production facilities underwent public notification procedures.
Furthermore, Luo Tiejun highlighted that CISA will vehemently oppose the arbitrary promotion of ultra-low emissions through the addition of layers of regulations.
The association claims that while operating costs are roughly 200 yuan per tonne ($28), investments in ultra-low emissions in the nation’s steel industry total 450 yuan per tonne ($63.4).
An industry association representative stated that steelmakers must maintain the industry’s competitiveness in the worldwide market while striking a balance between the economy, environment, or sustainability.
China will expedite the decommissioning of outdated steelmaking facilities, as previously reported by Shree Metal Prices. Furthermore, there will be no more blind project launches for high energy and high emission projects.
To cut carbon emissions, the nation will keep pushing for the expansion of electric arc furnace (EAF) steel output. By 2025, their portion is expect to be 15 percent of the total, per the plan.