On February 28, the China Iron and Steel Association (CISA) officially launched its Electric Arc Furnace (EAF) Steel Sub-Association at an inaugural meeting in Shijiazhuang, Hebei Province.
Source: China Iron and Steel Association
On February 28, the China Iron and Steel Association (CISA) officially launched its Electric Arc Furnace (EAF) Steel Sub-Association at an inaugural meeting in Shijiazhuang, Hebei Province. The event was hosted by HBIS Group Shisteel Company and presided over by CISA Deputy Secretary-General Shi Hongwei, who announced the official decision to establish the sub-association.
Electric arc furnace (EAF) steelmaking has long been economically less favorable than basic oxygen furnace (BOF) steelmaking. Combined with a shortage of scrap steel resources, the development of EAF steel production in China has been relatively slow. Currently, China’s EAF steel capacity stands at around 200 million tons, with actual production being even lower. According to recent data, in 2021, the share of EAF steel in China reached 10.7%, marking a 10-year peak. However, by 2023, this share had dropped to 9.7%. Currently, the proportion of EAF steel in China is approximately 10%, significantly lower than the shares in the United States (around 70%), Europe (about 50%), and Japan (around 30%). This also falls short of the 15% target set in China’s 14th Five-Year Plan.
EAF Steel’s Growing Role Amid Industry Challenges
At the meeting, CISA Vice President Luo Tiejun highlighted the increasing importance of EAF steel in China’s steel industry. He noted that EAF steel plays a key role in balancing supply and demand while reducing carbon emissions. However, the industry is currently facing dual challenges: a downturn in demand and stricter low-carbon development requirements.
To address these challenges, Luo emphasized the need to further harness the advantages of EAF steel. He outlined three priorities for the sub-association: (1) establishing a sound working mechanism, (2) implementing decisions made by the sub-association’s executive committee, and (3) advancing efforts in scrap steel utilization.
Hebei’s Push for EAF Steel Development
Song Xiangdang, Deputy Director of the Hebei Provincial Department of Industry and Information Technology, introduced Hebei’s strategic initiatives for EAF steel development, including the rollout of near-zero carbon EAF steelmaking projects. He outlined four key focus areas for the province’s steel industry transformation: (1) shifting steel production from raw materials to high-value materials, (2) accelerating the transition from manufacturing to service-oriented production, (3) promoting digital transformation, and (4) driving high-quality development of EAF-based short-process steelmaking.
Government Support for Industry Upgrade
Wen Gang, Director of the Steel Division at the Ministry of Industry and Information Technology, acknowledged China’s progress in EAF steel development but pointed out existing challenges, including cost competitiveness, key technologies, and supply chain coordination. He called for stricter enforcement of industry policies to ensure a fair market environment and urged steel companies to leverage government incentives for equipment upgrades and ultra-low emission retrofitting.
Additionally, he emphasized the need for greater adoption of digital and smart technologies to enhance efficiency and sustainability.
Environmental Goals and Carbon Market Opportunities
Zhao Chunli, Deputy Director at the Atmospheric Environment Department of the Ministry of Ecology and Environment, discussed the environmental pressures facing the steel industry. She emphasized the need to accelerate ultra-low emission transitions, promote EAF steel as a greener alternative to traditional blast furnaces, implement targeted policies to support leading enterprises, and strengthen technological advancements for sustainable development.
Liu Wenbo, a researcher from the Ministry’s Carbon Emission Trading Management Division, noted that the increasing availability of scrap steel and improvements in China’s power structure have created new opportunities for EAF steel. He highlighted the role of the national carbon market in facilitating a cost-effective transition for steel enterprises. By allocating carbon emission quotas and leveraging market incentives, the system encourages companies to enhance energy efficiency, invest in low-carbon technologies, and accelerate decarbonization efforts.
Industry Leadership and Future Vision
Yu Yong, Chairman of HBIS Group, stated that China’s expansion of EAF steel production is both a strategic response to global climate challenges and a key step in steel industry reform. He emphasized that this transition will significantly reduce pollutants, reshape the circular economy, and position China as a leader in the global low-carbon steel revolution. Yu expressed confidence that China could become the first major economy to achieve modernization through green heavy industry, providing a model for other nations seeking low-carbon solutions in high-carbon industries.
Huang Yongjian, the newly appointed President of the EAF Steel Sub-Association, described the sub-association’s establishment as a milestone for the industry. He outlined its key objectives: (1) strengthening its organizational structure to become a leading industry association, (2) conducting policy research and providing recommendations, (3) promoting technological innovation to drive industrial upgrades, (4) ensuring industry self-regulation to maintain market stability, and (5) expanding international cooperation to enhance China’s influence in the global steel sector.
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