Baosteel to supply green steel for Beijing Benz from 2023

Baoshan Iron & Steel (Baosteel) will begin to supply steel made with sharply reduced carbon emissions to Beijing Benz Automotive (BBAC) from next year, the Chinese steel giant said on Tuesday November 22

From 2026, the reduction in carbon dioxide emissions — related to Baosteel’s production of automotive steel using a hydrogen-based shaft furnace-electric-arc furnace process — will reach 50-80%, compared with traditional steelmaking methods.

Baosteel also intended to supply “green” steel with carbon dioxide emissions cut by 95% in the future.

These objectives were part of a Memorandum of Understanding (MoU) signed by Baosteel and BBAC on Tuesday, in their attempt to jointly create a low-carbon and green automotive steel supply chain, to promote a reduction in carbon emissions across the whole industrial chain as well as the whole life cycle of resulting products.

The cross-sector collaboration marked another crucial step by Baosteel toward its decarbonization targets.

In September, Baosteel launched three ultra-low-carbon auto parts, which were said to reduce related carbon emissions by more than 50%.

The steelmaker is also building a net-zero-carbon automotive steel sheet production line at Zhanjiang in southern China, carbon emissions from which will be about 90% lower than from a blast furnace-based steelmaking process.

After the hydrogen-based shaft furnace comes online by end-2023, with capacity for 1 million tonnes per year of direct-reduced iron (DRI), the production line will be fully put into operation in 2025 and will be able to produce as much as 1.8 million tpy of net-zero-carbon, high-end flat steel.

BBAC was founded in 2005 and is a joint venture with investment from BAIC Motor, Mercedes-Benz Group AG and Daimler Greater China. It integrates R&D, engine and complete vehicle production, sales, and after-sales services, according to its website.

In line with BAIC Group’s “Blue Plan” and Mercedes-Benz’s “Ambition 2039,” BBAC intends to be carbon dioxide-neutral across the supply chain by 2039.

Prior to the cooperation between Baosteel and BBAC, fellow German carmaker BMW Group and HBIS signed an MoU for the creation of a green and low-carbon steel supply chain.

HBIS, based in Hebei, northern China, will supply low-carbon steel for BMW car production in Shenyang from mid-2023.

What to read next
The European Union’s Carbon Border Adjustment Mechanism will be implemented in seven months’ time but the region’s steel industry was still not fully prepared for the gradual changes the system will involve, Fastmarkets heard on Thursday May 8 at the Made in Steel trade fair in Milan, Italy.
The global steel industry’s move to decarbonize and China’s penchant for lower-grade ores in recent years have uncovered challenges for high-grade iron ore to live out its value in both the blast furnace-based steelmaking route and the direct-reduction iron process, delegates told Fastmarkets during the Singapore International Ferrous Week (SIFW), which takes place from May 26-30.
The global iron ore market, a pivotal component of the steelmaking industry, has historically been driven by simple supply and demand dynamics. However, steel trade tariffs, trade wars and a growing trend toward resource nationalism are reshaping this once-basic industrial staple. These forces, alongside rising environmental regulations and shifting trade patterns, are profoundly influencing iron ore pricing, production and consumption trends. 
We provide an overview of how projects developed under Sustainable Agriculture carbon protocols are contributing to climate action on a global scale and what challenges they face.
The playing field for global iron ore brands could be poised to be leveled, given a recent announcement on lower iron content in a key mainstream Australian direct shipping ore, iron ore market participants told Fastmarkets, adding that the development could narrow the price disparities between major Australian mid-grade iron ore brands.
This strategic launch is intended to offer the market a single reference price denoting the differential between US Midwest rebar and heavy melting-grade scrap, a key component in the production of that grade. Details of the previous launches can be found via this link. The methodology specification for this differential is: MB-STE-0930 Steel reinforcing bar […]