MYSTEEL: As emissions trading matures China's EAF makers stand to gain

Source: Mysteel Nov 22, 2024 18:45

Reversing the wide imbalance now, electric arc furnace (EAF) steelmaking in China is expected to become more cost-effective than blast furnace-basic oxygen furnace (BF-BOF) methods by 2039, when BF-BOF operations will face escalating carbon emission expenses, Mysteel argues in a new research report comparing both technologies through the lens of carbon reduction. And this is ignoring the 'green' market credentials EAF makers can claim by being primarily and perpetually recyclers of steel.

Compared with BF-BOF steelmaking, the EAF route aligns better with the 'green trend' of the steel industry because of its low-carbon nature, but its development is currently being hindered by higher operating costs, the report pointed out. Mysteel estimates that between January and end-October this year, the average cost incurred