China appears unlikely to meet its year-end target for increasing the share of less-polluting steel production as adoption of cleaner electric-arc furnaces (EAFs) stalls, Bloomberg reports. The property crisis has further dampened demand and prices, posing a challenge to the country’s efforts to balance economic growth with climate goals.
As the world’s largest steel producer and polluter, China aims for EAFs to account for over 15pct of total steel output by the end of 2025. The World Steel Association estimated EAFs made up just 9.9pct of production in 2023.
China’s real estate slump, marked by falling home prices and unsold units, continues to weigh heavily on steel demand and prices, adding to the struggles of steelmakers amid broader economic headwinds.
