Bangkok, July 25, 2024 — The recent conference in Bangkok shed light on the evolving dynamics of China's steel industry, emphasizing the critical role of renewable energy, decarbonization, and the circular economy in shaping the future of global metals and mining. Keynote speakers highlighted the challenges and opportunities presented by these transitions, particularly in the context of China's ambitious decarbonization goals. The speaker was Katherine Zhu from Chinese media SMM.

 

 

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Global Energy Transition and Decarbonization

 

The global push towards clean renewable energy and the decarbonization of industries has underscored the importance of recycling and the circular economy. For the steel industry, this translates into a shift from traditional blast furnace methods to more sustainable processes. The primary steelmaking processes in focus are:

- Blast Furnace (BF) and Basic Oxygen Furnace (BOF): These traditional methods are known for their higher carbon dioxide emissions, ranging from 1.8 to 2.5 tons of CO2 per ton of steel produced.

- Electric Arc Furnace (EAF): A more environmentally friendly option, producing significantly lower CO2 emissions (0.5 to 0.8 tons per ton of steel).

 

Decarbonization Targets and Challenges

 

China's Ministry of Industry and Information Technology (MIIT) has set ambitious targets for increasing EAF production:
- 2025 Target: 15% of steel production to be from EAF.
- 2030 Target: 20% of steel production to be from EAF.

 

 

Technological Innovations and Value-Added Production

 

Both long and short steel production processes are shifting towards higher value-added products. This strategic move aims to improve market competitiveness and meet evolving industry standards. Innovations in feedstock usage and carbon emission reductions are crucial. For instance, increasing the use of scrap steel can significantly lower emissions. If 100% scrap steel is used in EAF, CO2 emissions could drop to 0.4 tons per ton of steel.

 

 

Domestic and Global Supply Dynamics

 

China's domestic steel scrap supply has been stable, but there's potential for significant growth:

- Current Supply: Around 250 million tons per year, mainly from manufacturing sectors like machinery and automobiles.

- Future Projections: With an increase in public construction and infrastructure projects, the supply from these sectors is expected to rise substantially by 2050.

 

 

Industry Developments and Future Outlook

 

The Chinese government has approved 11 batches of scrap processing companies, supporting the development of the scrap steel industry. Currently, there are over 800 companies with a processing capacity of 216 million tons. This capacity is expected to reach 320 million tons in the coming years, bolstering the supply of high-quality scrap steel for domestic use.

However, the global landscape poses challenges. Some countries are advancing scrap export restrictions to secure resources for domestic use, impacting global trade volumes. Additionally, technological advancements in scrap processing could enhance its application in high-end products, making the industry more promising.

 

 

（IRUNIVERSE　ZheoChan）

 

 

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