China plans to increase iron ore output, boost use of steel scrap

China plans to increase iron ore output, boost use of steel scrap

08-Feb-2022 Intellasia |
CNA |
5:02 AM

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China, the world’s top steel producer, said on Monday (February 7) that it aims to “significantly increase” mines’ iron ore production and boost utilisation of steel scrap, as part of a plan to develop a higher quality, greener ferrous industry.

Making a joint statement with the state planner and environmental regulator, the Ministry of Industry and Information Technology (MIIT) reiterated a desire for consolidation and restructuring in the steel sector.

But no specific goals were given, unlike a draft plan released at the end of 2020 that had aimed for China’s top five steelmakers to account for 40 per cent of total steel output by 2025.

The statement said more than 80 per cent of steel capacity should complete ultra-low emissions reform by 2025, and the industry’s carbon emissions should peak before 2030.

By 2025, China aims to be gathering over 300 million tonnes of steel scrap annually to supply its ferrous industry. A government-backed consultancy had estimated steel scrap supplies stood at around 260 million tonnes in 2020.

The latest plan also aimed to increase output from electric arc furnaces (EAF) to account for over 15 per cent of China’s total crude steel production by 2025. EAF output had accounted for around 10 per cent of total production in 2020, according to the consultancy.

The targets were less ambitious than those contained in a draft plan released by MIIT at the end of 2020. The draft had pencilled in plans for EAF output to account for a minimum 15 per cent of total crude steel production, or a maximum 20 per cent by 2025.

China’s mammoth industrial sector had suffered a power crunch in the second half of 2021 due to coal shortages, forcing the steel sector to be more cautious about shifting to EAFs.

“The changes in the plan compared with draft is probably because authorities want to be more prudent,” said Zhuo Guiqiu, analyst with Jinrui Capital.

https://www.channelnewsasia.com/business/china-plans-increase-iron-ore-output-boost-use-steel-scrap-2483426

Category: China

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This is not a CAPTIS article. Originally, it was published here.