China’s Crude Steel Output Unlikely to Reduce in 2021
China Metallurgical Industry Planning and Research Institute Chairman Mr Li Xinchuang told an industry conference in Beijing that China’s crude steel output will peak at around 1.16 billion tonnes in 2025. Mr Xinchuang estimation is contrary to China’s Ministry of Industry and Information Technology’s target to bring down China’s crude steel output in 2021 from 1.065 billion tonnes of crude steel in 2020, as part of its efforts to reduce carbon emission. The Chinese steel market is divided on the likelihood of the yearly decline in steel output in 2021, though many believe that the Chinese authorities will find ways to accomplish the mission.
Mr Xinchuang also said “Carbon emissions in the sector will also reach a peak by 2025. The target is very challenging. State owned mills should take the lead.”
The steel sector accounts for 15% of China’s total greenhouse gas emissions, making it a key focus after President Xi Jinping pledged last year to pass the peak of China’s carbon emissions in the next ten years. Chinese government has set out a five year development plan to promote green transformation for the steel sector. According to the plan “China aims to complete ultra low emission upgrade for 530 million tonnes of steel capacity. Around 620 million tonnes of crude steel capacity had already been upgraded to ultra low emissions or were in the process of being upgraded by the end of 2020.”