China's crude steel output exceeds half of the world's, and low-carbon transformation should be accelerated

At present, carbon reduction in China's steel industry is progressing in an orderly manner. According to the data of China Iron and Steel Association, as of the end of July, 251 iron and steel enterprises nationwide had completed or were implementing ultra-low emission transformation with a crude steel production capacity of 681 million tons. According to incomplete statistics, the accumulated investment in ultra-low emission transformation of domestic steel enterprises has exceeded 150 billion yuan.
As the world's second largest economy and a major carbon emitter, reducing carbon emissions of real industries in China is not only an inherent requirement for high-quality economic and social development, but also the only way to enhance the international competitiveness of industries and avoid the "carbon barrier" in international trade. From the current situation, China's crude steel production accounts for more than half of the world's total, and the carbon emissions generated by the steel industry account for about 15% of the total carbon emissions of the country. The steel industry is the industry with large carbon emissions in China's 31 manufacturing sectors. From the perspective of effect, the process of carbon reduction in the steel industry can generate huge demand for new energy vehicles and photovoltaic, which is conducive to the development of these strategic industries through demand. Therefore, whether from the perspective of fulfilling the "double carbon" commitment or from the perspective of sustainable development, it is of great significance to promote carbon reduction in the steel industry.
Although carbon reduction in the steel industry has achieved positive results, it still faces some challenges. First of all, the absolute scale of the steel industry determines the large amount of low-carbon transformation projects. The carbon neutral road of more than one billion tons of steel production capacity is unprecedented in human history. On the one hand, it needs to invest a lot of resources. On the other hand, it also needs to coordinate the upstream and downstream of the industrial chain to complete low-carbon transformation without affecting the stability of the supply chain. Secondly, since this year, due to multiple factors, the downstream market demand has weakened, and the energy costs caused by the Russian Ukrainian conflict and other factors have risen. It is difficult to be optimistic about the industry's profitability, and the resources that can be used for investment in the short term are limited. Moreover, it is necessary to further improve the differentiated management policy, and give certain policy support to enterprises implementing ultra-low emission transformation, so as to avoid the situation that bad money drives out good money.
The steel industry and enterprises should base themselves on the current situation and take a long-term view to promote low-carbon transformation as a strategic measure. There should be a systematic plan to coordinate the upstream and downstream of the industrial chain to promote carbon reduction. We should seek benefits from management, focus on the integration of data and reality, and achieve energy conservation and consumption reduction through intelligent transformation to improve energy efficiency. It is necessary to adjust the industrial structure, increase the proportion of short process steelmaking, and strengthen the R&D and industrial application of hydrogen based low-carbon metallurgy technology.
Carbon reduction in the steel industry is of great significance in promoting the "double carbon" process. We must strengthen confidence, let enterprises, governments and scientific research institutions form a joint force in carbon reduction in the steel industry, make overall progress, and let the ultra-low emission steel industry form a strong support for achieving the "double carbon" goal.