CISA: EAF makers supported as China's 'green' transition advances

"Government ministries are currently refining capacity control schemes in line with the roadmap of (China's) 15th Five-Year Plan to tackle 'involution-style' competition in the steel industry," Luo said.

"Steelmaking companies should carefully assess their competitiveness and profitability against a backdrop of weakening steel demand, and to weigh their next moves with caution," he advised.

Despite the challenging environment, Luo highlighted a series of supportive policies for EAF steelmaking that have been introduced in the past year, with the EAF process viewed as a key pathway for the industry's low-carbon transition.

For example, in January this year, China unveiled an action plan to promote the application of recycled materials, aiming to achieve an annual recycling volume of over 300 million tonnes for steel scrap by 2030. By 2025, China's total steel scrap recycling volume was around 227 million tonnes, Luo noted.

Moreover, the Government Work Report released in March by the State Council had, for the first time, set a binding goal of cutting carbon intensity by 3.8% during this year, underscoring China's strong commitment to advancing a low-carbon economy, Luo stressed.

With policy backing, ten domestic EAF steel mills have been named among the first batch of leading enterprises compliant with the steel industry's new regulatory standards, according to the latest announcement released by the country's Ministry of Industry and Information Technology.

"As green development deepens, the prospects for EAF steel producers are set to become increasing favorable," he emphasized.

Written by Anthea Shi, shihui@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com