China Launched Fresh Plan to Boost Steel Scrap Consumption

SEATTLE (Scrap Monster): China- the world’s leading steel producer announced plans to boost utilization of steel scrap, as part of plan to develop a greener ferrous industry. The Ministry of Industry and Information Technology (MIIT) has been focusing on various efforts to restructure the steel industry.

The Chinese environment regulator has not mentioned any specific goals. As per the statement, the Chinese administration wishes to have 80% of its total steel capacity to complete ultra-low emissions reform by 2025. It anticipates that the industry’s carbon emissions should peak by 2030.

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The country anticipates steel scrap collection to total at around 300 million tonnes annum by 2025. The scrap supplies had totalled around 260 million tonnes in 2020. According to the latest plan, the country plans to raise output from EAFs to 15% of the total crude steel production by 2025, as compared with 10% share of EAF output in 2020. However, this is comparatively lesser than the target of up to 20%, specified in the 2020 draft plan released by the MIIT.

Furthermore, the Chinese regulators stated that it will continue with steel production controls in 2022 as well. It must be noted that the annual crude steel output had recorded year-on-year decline in 2021.