BEIJING:
China, the world's top steel producer, said on Monday (Feb 7) that it aims to
"significantly increase" mines' iron ore production and boost utilization
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.
Source:
CNA