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Steel News

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Home Steel News Steel price rises in China due to carbon peak & carbon neutrality commitments
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Steel price rises in China due to carbon peak & carbon neutrality commitments

28 Sep 2021 17:18 reported by Iona Chen

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The Chinese government has implemented dual control on energy consumption and intensity against the high energy consumption industry such as steel and cement industries to realize its carbon peak and carbon neutrality commitments.

Many provinces were forced to suspend production due to power curtailment, and steel and other industries are likely to boost prices due to the effect of production restrictions.

In the first half of this year, China's crude steel and steel products production increased by 11.8% to 563 million tons and by 13.9% to 698 million tons year on year, respectively. The production capacity has not declined but increased, which seriously violated the proposal of dual carbon goals this year.

China accounts for the largest steel export volume in the world; therefore, if production restrictions cause an imbalance between market supply and demand, this will impact the future trend of international steel prices.

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