China's provincial govts set to upgrade steel sector for cleaner air

A total of 22 out of 34 provincial regions in China have outlined their respective measures to curb air pollution from key sectors, including the iron and steelmaking industry, post-the State Council issuing an action plan aimed at improving air quality and promoting the country's 'green' transition at the end of last year, Mysteel Global learned.

According to the action plan, by 2025, particulate matter (PM) of 2.5 density in cities at the prefecture level and above should be reduced by 10% compared to 2020. The number of heavily polluted days should be kept within 1% in the whole year, and the total emissions of nitrogen oxides and volatile organic compounds should decrease by more than 10% from 2020, as reported.

The plan emphasized upgrading the steel industry as a key path for reducing pollutant emissions. It proposed eliminating outdated steelmaking capacities, integrating production processes like coking, ore sintering and pelletizing, and hot rolling, as well as advancing steel production via the electric-arc-furnace (EAF) route. Specifically, it aims to increase the ratio of EAF steel output to 15% of the country's total steel production by 2025.

Following this goal, the 22 provincial regions have set their specific targets for developing local EAF mills in their action plans, Mysteel Global noted.

Most provinces have aligned their goals with those set by the State Council, while a few regions with advanced EAF capacity are more ambitious, as their plans suggest. For example, authorities in Southwest China's Sichuan and East China's Zhejiang both target lifting the ratio of EAF-route steel production to 40% by 2025.

In addition to increasing EAF production, some provinces have also attached importance to transition to ultra-low emission upgradation in the steel industry and optimization of steel-making raw materials, Mysteel observed.

The government of North China's Inner Mongolia has put forward that by 2025, more than 80% of local steel capacity should complete the ultra-low emission transition, and by 2027, all steel capacities in the region should complete such initiatives.

Central China's Hunan aims to increase the average steel scrap ratio in the province's overall steel-making raw materials mix to over 30% by 2025, and Northeast China's Liaoning set the goal at 15% for the ratio, according to the plans.

Mysteel Global also notes from a meeting that East China's Jiangsu, a major hub for EAF-based steel-making, is also reviewing its action plan in this regard.

These upgrades in the steel industry are expected to contribute to the continual improvement of air quality in China, creating a cleaner environment for the population, according to the State Council.

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