China plans to make world’s biggest steel industry green

Bloomberg

China is strengthening efforts to clean up one of the dirtiest corners of its economy, and now plans for its mammoth steel industry to reach peak emissions within four years.
The nation aims to hit peak carbon emissions before 2025, and reduce them by 30% by 2030, according to a WeChat post by the China Metallurgical Industry Planning and Research Institute that cited a draft plan. China is also set to release stricter measures around crude steel production capacity and its replacement, the Economic Information Daily reported, citing a person it didn’t identify.
Steel accounts for 15 percent of China’s carbon emissions, the biggest chunk among manufacturers, and is an important sector to rein in as the country plots its course to a carbon-neutral economy by 2060.
Authorities have already implemented a slew of output restrictions and cracked down on steel mills flouting curbs, mainly in the hub of Tangshan, while some of the industry’s giants have outlined their plans to reduce emissions in coming decades.
“We forecast that China will achieve peak steel production rates over the course of 2020 and 2021, as a result of domestic Covid-19 stimulus-backed, steel-intensive infrastructure projects,” said Atilla Widnell, managing director of Navigate Commodities. It is therefore “entirely feasible” that the industry can meet its peak emissions targets before 2025, he added.
Steelmakers in the nation churned out the material at a record pace last year as the country recovered from the coronavirus. Officials have already vowed to roll back that output — which topped 1 billion tons for the first time — to control pollution.
China’s green drive has fueled a surge in prices, with optimism about demand during the spring construction season adding a further tailwind. Rebar inventories fell for a second week last week, after more than tripling in 2021, according to Shanghai SteelHome
E-Commerce data.
Hot-rolled coil futures in Shanghai rise as much as 1.5% to the highest since the contract began trading in 2014, and closed 0.8% higher at 5,372 yuan a ton. Rebar futures were steady near the highest since February 2011.
Iron ore dropped 1.7% to $155.75 a ton in Singapore by 3:54 pm local time, while Dalian prices closed 2.2% lower after jumping 3.2%.