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China’s EAF steel production to exceed 15% in 2025 for decarbonization

Electric-arc furnace (EAF) steel production is on the rise as China strives to meet decarbonization targets

August 1, 2022
By Jessica Zong
China Decarbonization Ferrous scrap Scrap and secondary

To aid China’s goal of decarbonizing the steel industry, crude steel produced via electric-arc furnaces will exceed 15% by 2025 and 20% by 2030, the Ministry of Industry & Information Technology (MIIT) said on Monday August 1.

The proportion of EAF-produced crude steel was around 11% in 2021, one industry analyst said.

“China needs to increase the supply of high-quality scrap in order to raise the percentage of EAF-produced steel,” the analyst added.

China’s consumption of steel scrap was 226 million tonnes in 2021, down by 2.8% from 2020, according to the International Recycling Bureau. Industry analysts expect the consumption of steel scrap to reach 250 million tonnes in 2025.

The annual processing capacity of steel scrap producers that meet MIIT’s standards will exceed 180 million tonnes by 2025, the ministry said.

MIIT also called for further innovation and implementation of technologies such as hydrogen-rich carbon recycling blast furnace smelting to further aid decarbonization.

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