China Sets Ambitious Long-Term Goal For The Share Of EAF Steel In Total Crude Steel Production

•Currently, EAF steel production in China accounts for less than 10% of total crude steel production.

•The Ministry of Industry and Information Technology has set a target for EAF steel to constitute over 15% of total crude steel production by 2025. Additionally, the China Iron and Steel Association has proposed a long-term plan for EAF steel to account for over 30% of total crude steel production by 2035.

•According to SMM statistics, 100 million mt of new EAF steel production capacity will be built in the future, while 40 million mt of outdated capacity will be eliminated, resulting in a net increase of 60 million mt.

•The China Association of Metalscrap Utilization aims for scrap steel to account for 30% of furnace charge used in steelmaking process by 2025, compared to the current level of around 20%.