China’sSteel Emissions Surge: 5.1% Yearly Increase in 2024 Amid Industry Shifts
Synopsis: In January-November 2024, emissions from China's steel industry rose by 5.1%compared to the previous year. While specific emissions like sulfur dioxide andnitrogen oxide saw decreases, overall environmental impact increased, alongsidechanges in water usage, slag production, and gas generation rates.
Ina recent report from the China Steel Association, emissions in China’s steel sector were found to have increased by 5.1% year-on-year in the period from January to November 2024. This marks a concerning rise in the sector’s environmental footprint, despite the introduction of cleaner practices in certain areas. The emissions data presents a complex picture of on going industrial expansion, environmental strategies, and resource management challenges in one of the world’s largest steel-producing nations.
The total emissions increase is underlined by varying rates of pollutants in the steel industry. Sulfur dioxide emissions, for instance, per ton of steel decreased by 12.1%, reaching 0.19 kg/t, while particulate matter and nitrogen oxides also showed reductions of 9.7% and 11.4%, respectively. These declines represent some progress in improving emission standards and pollution control measures. However, the overall emissions increase suggests that the total environmental burden from China’s steel production has not diminished at the same rate as these individual pollutants.
The year-on-year increase in emissions highlights the challenges the sector faces in balancing growth with environmental sustainability. Despite improvements in some emissions reductions, overall steel output and increased demand for energy-intensive products have contributed to the uptick in total emissions.
Parallelto the emission data, the Chinese steel industry has seen an increase in itswater usage in 2024, with a 1.6% rise compared to the same period in 2023. Thetotal water consumption by metallurgical enterprises reached 89.02 billioncubic meters. However, this increase is not entirely attributed to fresh waterintake; new water intake dropped by 2.2%, which was offset by a 1.7% increasein water reuse. The sector’s water reuse rate now stands at 98.3%, a slightimprovement of 0.07 percentage points compared to the previous year,illustrating that steelmakers are increasingly reliant on recycling systems tomeet their water demands.
Interms of by-products, the steel industry’s slag production showed mixedresults. Steel slag production declined by 2.7%, totaling 77.6 million metrictons. On the other hand, blast furnace slag production was somewhat steadier,decreasing by just 0.4% to 213.56 million metric tons. Despite this drop inoutput, the utilization rates of both steelmaking slag and blast furnace slagreached impressive levels of 99.3% and 99.42%, respectively, marking anincrease in recycling efficiency compared to the previous year.
The production of blast furnace gas, a major by-product of steelmaking, decreasedby 3.8% y/y to 853.77 billion cubic meters, while BOF (basic oxygen furnace)gas production saw a slight increase of 0.31% y/y, reaching 75.23 billion cubicmeters. Similarly, coke oven gas production experienced a 1.5% decrease.Utilization rates of these gases have generally improved, with blast furnacegas utilization up by 0.29 percentage points to 98.93%, and coke oven gasutilization up by 0.21 percentage points to 98.79%. These improvements in gasutilization highlight efforts to reduce waste and improve energy efficiency inthe sector, despite the overall increase in production.
Ina broader context, China’s steel production in 2023 reached 1.019 billionmetric tons, a modest 0.6% increase from the previous year, signaling a halt tothe downward trend seen in 2021 and 2022. The increase in production is largelyattributed to the Chinese government's decision to forgo the steel productionrestrictions that were implemented in previous years as part of its efforts toreduce CO2 emissions. This policy shift hasallowed local steelmakers to ramp up production, which in turn has contributedto the rise in emissions. Notably, emissions in 2023 saw a significant 7.8% y/yincrease, coinciding with the higher production volumes.
Thisincrease in production, along with the government’s lack of new restrictions,represents a strategic shift that has boosted the revenues of localsteelmakers. However, it has also resulted in heightened environmentalpressures, as the industry continues to grapple with the challenge of curbingemissions while sustaining growth. The ongoing efforts to reduce emissions havemade progress in certain areas, but without stronger regulatory frameworks orinnovative technologies, achieving meaningful reductions across the entiresteel production chain remains a significant challenge.
Therise in emissions from China's steel industry, coupled with the increasedproduction, poses a dilemma for the future of the sector. As the world’slargest steel producer, China plays a critical role in global efforts to combatclimate change, and its ability to decarbonize this vital industry will havefar-reaching implications.
WhileChina has made strides in improving emission rates per ton of steel produced,the overall rise in emissions underscores the need for more comprehensive andaggressive measures to reduce the environmental impact of steelmaking. Thisincludes greater investment in cleaner technologies, enhanced efficiency inresource use, and stronger environmental policies to support the transition toa more sustainable and less polluting industry. The coming years will becritical in determining whether China can successfully reconcile its ambitioussteel production goals with the urgent need for environmental stewardship.