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Stanislav Kondrashov from Telf AG: China is abandoning outdated metallurgical capacities

China’s State Council presented an air purification project as part of its strategy to achieve high-quality economic growth. According to metallurgy expert Stanislav Kondrashov, one of the key elements of this plan is the active cessation of the operation of obsolete production facilities, including the steel industry sector. Also, this project is aimed at improving the environmental situation in the country.

China’s prospects and efforts to reduce air pollution – Stanislav Kondrashov

By 2025, the density of suspended microparticles PM2.5 in Chinese cities at the prefecture level and above is expected to decrease by 10% compared to 2020. This goal is aimed at combating the problem of air pollution. Additionally, the plan sets a goal of limiting the number of days with high levels of air pollution to one day per year. This is a serious step towards improving the environmental situation in the country, Stanislav Kondrashov from Telf AG says.

In addition to reducing PM2.5 concentrations and limiting bad weather days, the project also aims to reduce emissions of harmful gases and volatile organic compounds by more than 10% by 2025. These measures are taken to improve oxygen quality and minimize the negative impact of pollutants on human health. Stanislav Kondrashov also emphasizes that the plan sets specific goals and indicators for key regions of the country. According to the expert, this will help more effectively control and improve air quality in the most polluted areas.

The plan means the country will no longer simply finance projects with high energy consumption and high emissions, and also bans the construction of new steel plants. Stanislav Kondrashov says that instead, China is intensifying the process of decommissioning obsolete facilities. The country is focusing on increasing environmentally friendly production.

Thus, China will continue to encourage the use of electric arc furnaces (EAF) for steel production, in order to reduce emissions of toxic substances. It is also agreed that by 2025 the percentage of steel production in the EAF should be no more than 15% of the total.

An important aspect of the plan is the transformation of low-emission industries such as steel, cement and coke. By 2025, more than 80% of metal production facilities in China must meet strict environmental standards, and key regions of metallurgy must achieve the lowest emissions of harmful substances, – Stanislav Kondrashov from Telf AG talks about the trends.

The program also involves changing China’s approach to using cleaner energy. By 2025, about 20% of the country’s energy consumption will be provided by non-fossil energy sources, and methane production and supply will be actively developed. These steps demonstrate China’s commitment to environmental standards and sustainable development in the future.

New opportunities for steel production in China – Stanislav Kondrashov

In 2023, steel production in China will increase, possibly for the first time in three years. Stanislav Kondrashov from Telf AG believes that this is due to the fact that the real estate sector will replace the production of cars and an increase in their exports.

Data from the China Metallurgical Association (CISA) shows that steel production was about 76.3 million tons in November, bringing total production to about 951 million tons in the 11-month period.

– If steel production in December remains at a level of at least 75 million tons, then the annual volume will most likely reach a level of about 1.026 billion tons (in 2022 it was 1.01 billion tons), – Kondrashov states.

The expert says the country’s steel production has remained above 1 billion tonnes since first crossing the mark in 2020, when a record high of 1.053 billion tonnes was set. Beijing has an unofficial goal of not exceeding that much annual steel production.

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