China to ‘significantly increase’ iron ore output, boost use of scrap steel to develop greener ferrous industry

China, the world’s top steel producer, said on Monday that it aims to “significantly increase” mines’ iron ore production and boost utilisation of steel scrap, as part of a plan to develop a higher quality, greener ferrous industry.

Making a joint statement with the state planner and environmental regulator, the Ministry of Industry and Information Technology (MIIT) reiterated a desire for consolidation and restructuring in the steel sector.

But no specific goals were given, unlike a draft plan released at the end of 2020 that had aimed for China’s top five steelmakers to account for 40 per cent of total steel output by 2025.

The statement said more than 80 per cent of steel capacity should complete ultra-low emissions reform by 2025, and the industry’s carbon emissions should peak before 2030.

By 2025, China aims to be gathering over 300 million tonnes of steel scrap annually to supply its ferrous industry.

A government-backed consultancy had estimated steel scrap supplies stood at around 260 million tonnes in 2020.