BUSINESS

Chart of the Day: China Risks Missing Green Steel Target

Published: Jul. 31, 2025 6:45 p.m. GMT+8

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China risks missing its 2025 green steel target as the use of coal-fired blast furnaces continues to expand and low-emission alternatives struggle to grow, according to a recent think tank report.

The report, published by the Centre for Research on Energy and Clean Air (CREA) on July 22, highlights the challenges China’s steel industry faces as it tries to reduce its carbon footprint. In the first half of 2025, blast furnace utilization rose to 88.6% from 85.9% last year, according to the report. Meanwhile, the utilization of lower-emission, scrap-based electric arc furnaces (EAFs) fell to 48.6% from 49.7% in 2024.

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China’s blast furnace utilization rose to 88.6%, while electric arc furnace (EAF) usage fell to 48.6%, leaving EAF’s share at 9.8%, far below the 15% 2025 target.
Missing the target may result in an extra 160 million tons of CO2 emissions; the global EAF average is 30%, with the US and India at 71.8% and 58.8%, respectively.
Steel exports surged to 111 million tons in 2024, but China faces foreign backlash and anti-dumping measures.

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Who’s Who

World Steel Association: The World Steel Association provided data cited in the report regarding the global average share of EAF steel production in 2024, as well as the shares in major steel-producing countries like the U.S., India, and Japan.

Baofu: Baofu is a scrap market intelligence firm. It reported that many Electric Arc Furnace (EAF) mills operated at a loss in the first half of 2025, with some incurring losses of over 200 yuan ($29) per ton of steel.

Ukraine's GMK Center: Ukraine's GMK Center is cited in the report regarding the global trend of countries restricting scrap exports. They note that 48 countries currently have such restrictions in place, with over one-third implementing outright bans. This highlights the growing importance of scrap as a policy-controlled asset rather than a freely traded commodity.

AI generated, for reference only