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China's Crude Steel Production Exceeds Half Of The World

Nov 03, 2022

At present, China's steel industry to reduce carbon work in an orderly manner. According to the data of China Steel Association, as of the end of July, a total of 251 steel enterprises with about 681 million tons of crude steel production capacity have completed or are implementing ultra-low emission transformation. According to incomplete statistics, the cumulative investment of domestic steel enterprises in ultra-low emission transformation has exceeded 150 billion yuan.


As the world's second largest economy and a major carbon emitter, China's reduction of carbon emissions in the real industry is not only an inherent requirement for high-quality economic and social development, but also a necessary way to enhance the international competitiveness of the industry and circumvent the "carbon barriers" in international trade. From the current situation, China's crude steel production accounts for more than half of the world, and the carbon emissions generated by the steel industry account for about 15% of the total carbon emissions in the country. From the role of the steel industry, the process of carbon reduction can be derived from the huge demand for new energy vehicles and photovoltaic, which is conducive to the development of these strategic industries through demand. Therefore, whether from the perspective of fulfilling the "double carbon" commitment or from the perspective of sustainable development, it is important to promote the steel industry to reduce carbon.


Although the steel industry has achieved positive results in reducing carbon emissions, it still faces some challenges. First of all, the absolute scale of the steel industry determines the large amount of low-carbon transformation projects, and the road to carbon neutrality for more than one billion tons of steel production capacity is unprecedented in human history. On the one hand, this requires a large amount of resources, on the other hand, to complete the low-carbon transformation without affecting the stability of the supply chain, but also requires the coordination of the industry chain upstream and downstream. Second, this year, affected by multiple factors, the downstream market demand weakened, coupled with the Chile-Ukrainian conflict and other factors brought about by the rise in energy costs, the industry's profitability is hardly optimistic, and the resources that can be used to invest in the short term are limited. Moreover, it is necessary to further improve the differentiated management policy and give certain policy support to the enterprises implementing ultra-low emission transformation to avoid the situation of bad money expelling good money.


The steel industry and enterprises should be based on the current, long-term, low-carbon transformation as a strategic initiative to promote. To have a systematic planning, coordinate the upstream and downstream of the industry chain to promote carbon reduction. We should seek benefits from management, take the integration of digital and real as a grip, realize energy saving and consumption reduction through intelligent transformation, and improve energy efficiency. We should adjust the industrial structure, increase the proportion of short-process steelmaking, and strengthen the R&D and industrialization of hydrogen-based low-carbon metallurgical technology.


It is important for the steel industry to reduce carbon to promote the process of "double carbon", and we must have firm confidence, so that enterprises, governments and research institutions can form a synergy in reducing carbon in the steel industry and promote it in a coordinated manner, so that the steel industry with ultra-low emissions can form a strong support to achieve the goal of "double carbon". The steel industry will have a strong support to achieve the "double carbon" goal