China Crude Steel Output Curb Succeeded after Double Control Actions Implemented

January - Huang Libin, spokesman of China’s Ministry of Industry and Information Technology (MIIT) and director of the Bureau of Operation Monitoring and Coordination, said that China’s steel output curb is an important measure for China to achieve carbon peak and carbon neutral goals which was proposed by President Xi, and the MIIT was preparing new production capacity replacement plans and recording guidelines for new projects via cooperating with relevant departments.

An inventory restriction mechanism based on carbon emissions, pollutant emissions, and total energy consumption will be gradually established, ensuring that China’s steel output in 2021 to lower than the one in 2020, Mr. Huang added.

February - In 2021, MIIT will study and formulate a work plan to reduce production, and implement double control actions of capacity and output, in order to ensure that China’s steel output in 2021 to lower than the one in 2020, MIIT noting in an official document on its website in February.

June - Since the end of June this year, major provinces and municipalities in China have successively announced specific measures to reduce crude steel output and achieved significant results. The country’s crude steel output continued plummeting. According to figures from China’s National Bureau of Statistics, from January to November this year, China’s crude steel output decreased by 2.6% y/o/y to 946.36 million tonnes, basically completing its annual reduction target.

Measures for Replacement of Production Capacity in Iron and Steel Industry Updated

April - MIIT updated measures for replacement of production capacity in iron and steel industry after revision in April.

June - The updated measures, implemented from June 1 officially, greatly increase the proportion of steel production capacity replacement, expand the key areas for air pollution prevention and control, clarify the scope of replacement, and strictly prohibit newly-added production capacity projects.

According to the latest measures, the key areas for air pollution prevention and control have been expanded to the Beijing-Tianjin-Hebei, Yangtze River Delta, Pearl River Delta, Fenwei Plain and other regions as well as other "2+26" atmospheric channel cities, which are strictly forbidden to increase the total steel production capacity. Meanwhile, the replacement ratio in key areas is not less than 1.5:1, and in other areas not less than 1.25:1.  

Provinces (district, city) that have not completed the total steel production capacity control target are not allowed to accept steel production capacity transferred from other regions. And the Yangtze River Economic Belt region is not allowed to build new or expanded steelmaking projects outside the compliance parks.

Guiding Document on China's Work to Achieve Carbon Peaking and Carbon Neutrality Goals Unveiled, Large-scaled Steel Companies Actively Participating

June - The Department of Climate Change Response of the Ministry of Ecology and Environment entrusted China Iron and Steel Association (CISA) to carry out the country’s carbon emission trading work in iron and steel industry. The work mainly focused on: (1) the formulation and update of the carbon allowance allocation plan for the steel industry; (2) the testing of the national carbon market support system for the steel industry, etc.

CISA said it will carry out various tasks related to the carbon market in the steel industry through an orderly manner, laying a solid foundation for the ultimate realization of "carbon peak and carbon neutrality".

September - The Communist Party of China Central Committee and the State Council unveiled a guiding document on the country's work to achieve carbon peaking and carbon neutrality goals under the new development philosophy. The document outlines five major tasks, including creating a green, low-carbon and circular economy, improving energy efficiency, increasing the share of non-fossil energy consumption, lowering CO2 emissions and boosting the carbon sink capacity of ecosystems.

By 2030, China's carbon dioxide emissions will peak, stabilize and then decline, and by 2060, China will be carbon-neutral and have fully established a green, low-carbon and circular economy, it says, reiterating the country's previous pledge.

SteelHome learned that the revised and improved draft of carbon peaking and carbon reduction action plan for China’s steel industry has been comprised

December - CISA sent a letter to solicit opinions on the group standard of the "Steel Industry Carbon Emission Accounting Method".

Currently, many China’s large-scaled steel companies are actively embarking on carbon reduction during their opreations.

China Baowu made an official announcement that it will strive to achieve a carbon peak by 2023, have the process technology capability to reduce carbon by 30% by 2030, and achieve carbon neutrality by 2050.

Anshan Iron and Steel Group plans to achieve a peak carbon emission by 2025 and breakthrough in the industrialization of low-carbon metallurgical technology, and strive to reduce total carbon emissions by 30% from the peak in 2035;

HBIS plans to achieve a carbon peak in 2022, reduce carbon emissions by more than 10% from the peak in 2025, and achieve carbon emissions in 2030, reducing carbon emissions by more than 30% from the peak by 2030, and achieve carbon neutrality by 2050.

Steel and Raw Materials Prices Hit Record Highs in 1H, then Down to Reasonable Range after Government Actions

A combination of global economy recovery, rapid start of steel demand, and production curbs for environmental protection caused China’s steel and iron ore prices continued surging and hit a record high in mid-May. In Q3, China’s coking coal, coke and ferroalloys prices successively climbed to new records highs.

China’s government then took active actions to ensure bulk commodity supplies and stabilize prices, severely investigating and punishing one who implements monopoly agreements, spreading false information, driving prices up, especially hoarding, and to publicly expose them in accordance with the law. After that, China’s steel and steelmaking raw materials prices fell back to a reasonable range.

China Cancelled Export Tax Rebate for All Steel Products, Promoting Steel Industry into High-Quality Developments

April - China’s Ministry of Finance said in a statement, citing the State Council, that the export tax rebates for 146 steel products will be removed, effective since May 1.

August - China’s Ministry of Finance and the State Administration of Taxation jointly issued an announcement to cancel the export tax rebate for other steel products, effective since August 1.

So far, all export tax rebates for steel products have been cancelled in China. The newly introduced tariff adjustment measures are in line with the country's iron and steel industry's industrial positioning of "mainly satisfying domestic demand, not export-oriented", further strengthening the national policy orientation, which is conducive to the transformation of the country’s iron and steel industry into high-quality developments.

Full-Length Documentary "Steel Backbone" Broadcasted

November - The six-episode full-length documentary "Steel Backbone", produced by China Media Group, was broadcast on CCTV Finance Channel since November 29. The documentary shows the historical leap of China's steel industry from scratch to strength, and comprehensively describes the industry's major influence, telling a story of strength and great historical value.

Structure of Baowu for South China and Ansteel for North China Formed after Ansteel, Ben Gang Merger

Since the beginning of 2021, the merger and reorganization of iron and steel industry has kept moving forward in China.

August - China's two major steelmakers, Ansteel and Ben Gang Group Corporation, inked a deal on Aug 20 to kick off their merger and restructuring that will create the world's third-largest steelmaker.

According to the deal, the owner of Ben Gang — Liaoning province's State-owned Assets Supervision and Administration Commission — will transfer a 51-percent controlling stake in the steelmaker to Ansteel, and Ben Gang will become a subsidiary of Ansteel.

For more Mergers and Reorganizations of China' s Steel Industry, please visit Mergers and Reorganizations of China' s Steel Industry

China Baowu Initiated the Establishment of a Global Low-Carbon Metallurgical Innovation Alliance

On November 18th, the Global Low-Carbon Metallurgical Innovation (GLCMI) Alliance, initiated by China Baowu and co-sponsored by the global steel industry and ecosystem partners, was announced in Shanghai.

The Global Low-Carbon Metallurgical Innovation Alliance is jointly established by 62 companies, universities, and scientific research institutions from 15 countries in the world.Its members include internationally renowned companies such as ArcelorMittal, ThyssenKrupp, Tata, BHP, Rio Tinto, Vale, FMG, as well as scientific research institutes and engineering companies, among them are RWTH Aachen University, Ukrainian Metallurgical Research Institute, Danieli and Pratt. The alliance positions itself as a technology exchange platform in the field of low-carbon metallurgical innovation to gather R&D resources of the global steel industry,  upstream and downstream companies, universities and research institutions to collaborate in the development of basic as well as forward-looking low-carbon metallurgical technology, with the goal of promoting technology cooperation, exchange and transformation, advancing the engineering and industrialization of low-carbon technologies, forming a low-carbon value innovation chain and promoting the low-carbon transformation in the steel industry. Members of the alliance will follow the principles of openness, vision sharing and intellectual property protection, actively respond to climate change, and work together for the future of the steel industry and for the benefit of mankind.

North China’s Hebei Province Asked Key Steel Bodies Relocated, Eliminating Inefficient and Excess Capacity

North China’s Hebei province issued "Work Plan for Comprehensive Treatment of Air Pollution in 2021" in May 2021. The plan proposes to accelerate the relocation of enterprises from the city, and promote the relocation of key polluting enterprises such as Handan Iron and Steel, Xingtai Iron and Steel, and Tangshan Huaxi Iron and Steel, speeding up the elimination of inefficiency and excess capacity, shutting down 20 blast furnaces under 1,000 cubic meters, 20 converters under 100 tons, and 5 coal-fired generating units.

Meanwhile, on the basis of completing the transformation of organized ultra-low emissions, the province should complete the unorganized ultra-low emissions by the end of 2021, promoting 46 steel companies to complete ultra-low emission assessment, monitoring and publicity.

China Large-Scaled Steel Enterprises Work on Green Metallurgy

April - On April 13, China's first hydrogen-based high-purity pig iron production line, which uses hydrogen as an energy vector and a reducing agent to reduce pig iron from iron ore, went into trial operations in the Inner Mongolia autonomous region, after 16 months of construction and with a total investment of about 1.09 billion yuan ($170 million).

Installed at Inner Mongolia Sesp Technology Co Ltd, a subsidiary of Jianlong Group, the plant is designed to have annual production capacity of 300,000 tons of pig iron from hydrogen-based smelting and reduction.

Smelting and reduction is a new steelmaking technology, an alternative to the blast furnace method, that overcomes certain fundamental problems in the latter, like dependence on large-scale operation and reliance on coking coal.

HBIS - May 10, HBIS Xuansteel launched its Hydrogen Energy Application Pilot Project, marked the world's first hydrogen metallurgy demonstration project officially started construction.

HBIS Xuansteel Hydrogen Energy Development & Application Pilot Project is an important step of implementation of Carbon Peaking, Carbon Neutralization of National Strategy and the Hebei Provincial Full Green & Low Carbon Recycling Development Economic System, it is also an integrated part of HBIS Xuansteel upgrading project. As one of the world’s largest steel manufacturers, HBIS has been taking the responsibilities of Producing Green Steel for Mankind and firstly in the industry, set its goal of Carbon Peaking and Carbon Neutralization. Innovative research and development will be carried out in the whole process of distributed green energy application, low cost hydrogen generation, hydrogen direct reduction, CO2 removal to explore the optimal path of low carbon, even zero carbon development to lead the world steel industry and building “Factories of the Future”.  

According to the studies, the project could reduce 60% of carbon emission every year. After its completion, it will be the world’s first low carbon generation pilot plant and make a first revolutionary, showpiece and key step in the green and low carbon development of steel industry.   

Baowu - In July 2021, Baosteel Zhanjiang Iron and Steel Co., Ltd., a subsidiary of China Baowu, announced unveiled the capacity replacement plan of its hydrogen-based shaft furnace system project (one-step).

Phase I construction will start from a hydrogen-based shaft furnace direct reduction demonstration project and facilities with a million-tonne level and full hydrogen process test.

Another hydrogen-based shaft furnace direct reduction demonstration project and facilities with a million-tonne level has been planned to start in Phase II construction.

In the future, renewable energy power - generation-green hydrogen produced by high-efficiency water electrolysis will be gradually adopted. The goal is to achieve a hydrogen ratio of 80% to 90%.

Baowu Ba Yi Steel - Baowu said it would pursue the use of hydrogen-enriched carbon recycling blast furnaces, green hydrogen-fuelled metallurgy, large-scale use of recycled steel, carbon capture and utilization, as well as other routes.

The company has partly finished construction and testing of hydrogen-enriched carbon-recycling blast furnaces at its Xinjiang Ba Yi Iron & Steel unit in western China and sees the project starting production in August 2022, Baowu Chairman Chen Derong said.

Chen also said Baowu was weighing construction of a demonstration short-process steel project in Xinjiang with annual capacity of 500,000-1 million tonnes, using exclusively steel scrap as raw material.