China’s expansive steel industry, which is on target to produce a record high of over 1bn mt of crude steel in 2020, will reduce output in 2021 in order to push on with its lower carbon emission targets.
According to media reports, the country’s industry minister will detail the steel capacity adjustments for 2021 in China’s next five-year plan and said that production must be cut next year to deal with overcapacity. Notably, China’s steel output has continued to rise since 2015 despite reduction measures being taken.
The official also indicated that green production methods will be a priority for the steel sector in the region in 2021. As previously annouced, the country plans to reach net-zero carbon emissions by 2060.The positive outlook in the iron ore segment this year, will also take a hit as crude steel production is subdued.
In a media statement, the minister stated that China has cut its steel capacity by 150mn mt during its last five-year plan, spanning 2016-2020, while also lowering energy consumption and carbon emissions.