Likely Semis Imports Surge by China could Support Steel Prices
Recent news from China suggest that importing more semi finished steel is a potential solution to the plight that Chinese steel supplies are insufficient to
Recent news from China suggest that importing more semi finished steel is a potential solution to the plight that Chinese steel supplies are insufficient to meet the surging demands as China seeks to cut carbon dioxide emission to achieve the carbon neutrality goal by 2060. China Iron and Steel Association senior official Mr He Wenpo in an interview shared his views in regard to hot questions surrounding the Chinese steel sector. He called for enlarging the import of semis to meet rising domestic needs, which could ease the impact on environment and resources imposed on steel supplies.
Importing semis is conducive to meeting the industry material demand under the stress of achieving carbon neutrality goal as the carbon dioxide emitted during steelmaking accounting for approximately 15% of the total release in the manufacturing sector. China imported a total of 38.5 million tonne of steel in 2020 including 20.2 million tonnes of finished steel and 18.33 million tonnes of semis and industry insiders suggest that semis import could increase to 30 million tonnes in 2030. If this situation arises, steel mills in Russia, Ukraine, Turkey India and Iran etc could capitalize to increase steel prices
Steel Industry low carbon emission reduction of industry is very important for the country to achieve the goal of carbon peak. According to China's target of carbon peak and carbon neutralization, China’s Ministry of Industry and Information Technology will implement industrial low carbon action and green manufacturing project this year and formulate action plans and roadmap for carbon peak in steel industry. In order to promote the work of carbon peaking and carbon neutralization in Chinese steel industry and ensure that the goal of carbon peaking can be achieved in advance, China Iron and Steel Association recently visited China Steel Research Institute and Beijing University of science and technology successively to carry out special research and exchange on the work related to the low carbon development of the steel industry.