China's environment ministry hails steel capacity scrapping success

MySteel Global: Addressing a press conference held by China's State Council Information Office on 25 September, Huang Runqiu, the country's ecology and environment minister, declared that cumulatively, China has eliminated about 300 million tonnes (mnt)/year (y) of outdated steel production capacity and 1 billion tonnes (bnt)/y of outdated coal production capacity.

Huang was cataloguing the strides China has made in environmental protection and resources conservation, and although he declined to give a time frame for the achievements in paring surplus steel and coal capacity, eight years seems to be basis.

Back in early February 2016, China's central government began introducing policies to reduce excess capacity in the steel and coal sectors, planning to eliminate 100-150 mnt/y of steel production facilities over the subsequent five years as the industry was battling with surplus capacity. At the same time, Beijing was aiming to permanently shut as much as 500 mnt/y of surplus coal production capacity within three to five years.

Meanwhile, China has completed ultra-low emission renovation on over 95% of the country's coal-fired power generating units and for 45% of crude steel production capacity nationwide, Huang noted.

In addition to promoting the optimisation and adjustment of its industrial structure, China is also accelerating the clean and efficient use of energy, according to ecology and environment ministry data.

For example, the proportion of coal consumed in China's primary energy generation dropped from 67.4% ten years ago to 55.3% in 2023. Furthermore, China has eliminated more than 40 million units of old and high-emission vehicles in the past decade. The proportion of new energy buses plying the country's roads has jumped from less than 20% ten years ago to more than 80% in 2023, Huang maintained.

China is working hard to promote synergies in the reduction of pollution and carbon emissions, Huang said, while the "green proportion" of development has increased significantly.

Note: This report has been written in accordance with an article exchange agreement between MySteel Global and BigMint.