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| CISA |
Driving Green Steel Development in China
In February 2025, the China Iron and Steel Association (CISA) officially launched the Electric Arc Furnace Steel Producers Association (EAFSA) in Shijiazhuang, Hebei Province. The new association aims to accelerate the development of green steel, enhance industry efficiency, and reduce emissions. The electric arc furnace (EAF) method, despite being more environmentally friendly, has historically faced challenges in China due to higher costs and limited ferrous scrap availability.
China’s EAF capacity stands at 200 million tons, but actual production remains significantly lower. The EAF steel share declined from 10.7% in 2021 to 9.7% in 2023, lagging behind the United States (70%), Europe (50%), and Japan (30%). This also falls short of the 14th Five-Year Plan target of 15%.
CISA Vice President Luo Tiejun emphasized the importance of EAF steel in balancing supply and demand while meeting carbon reduction goals. The association will focus on:
- Developing an effective organizational structure
- Implementing policies to improve competitiveness
- Promoting scrap utilization for EAF production
Government and Industry Support for Low-Carbon Steel
Hebei, a major steel-producing province, is taking active steps toward low-carbon steel projects. Song Xiangdang, Deputy Director of the Department of Industry and Information Technology, outlined strategies to accelerate digital transformation and high-value steel production.
Government representatives, including Wen Gang from the Ministry of Industry and Information Technology, emphasized the need for stronger policies and investment in advanced technologies. Zhao Chunli from the Ministry of Ecology and Environmental Protection highlighted the importance of ultra-low emissions initiatives and supporting EAF as a greener alternative.
China aims to become a global leader in low-carbon steel by modernizing its heavy industry. The establishment of EAFSA marks a key step in this transformation, aligning with global environmental trends.
In 2024, China’s crude steel output fell 1.7% year-on-year to 1.005 billion tons, the lowest level in five years. Experts predict that 2024 may be the last year China’s steel production exceeds 1 billion tons, signaling a shift towards more sustainable steelmaking.
