News Room - Steel Industry

Posted on 28 Jul 2015

MIIT, CISA Say China's Steel Industry Is Not Highly Polluting Now

There's talk in the last two weeks that China's Ministry of Environmental Protection will announce mandatory steel cutbacks at Northern Chinese mills for the military parade on September 03. Although there has been no official file from the Ministry or oral messages from local municipalities and steelmaking operation is quite normal, spot steel and iron ore prices have been supported by the speculation, particularly in futures market, said Qian Yi, iron ore analyst with SteelHome.


The environmental protection moves in China will impose bigger impact on raw materials than steel production, Qian said, as most Chinese steel mills are able to meet environmental standards nowadays.

With continuous huge investments on environmental protection in the past two years, many small steel manufacturers that fail to meet the standards have been ruled out amid steel price depression, according to senior official with China's Ministry of Industry and Information Technology (MIIT).

Steel, cement, electrolytic aluminum industry and others were used to be high energy-consuming and highly polluting, but after years of efforts, ”those sectors are now energy-saving and environmental friendly” and have turned into “competitive industries”, Huang Libin, deputy director with MIIT, said at the press conference on July 22.

Chi Jingdong, Vice President of CISA, feels the same way. “The steel manufacturing process nowadays are growingly green and the improvement in product quality also boosts energy saving and environmental protection” and “most steel mills in China can meet present national standards’.

70-80 percent of energy used in steel production is now provided by secondary energy generated in steelmaking process, and coal consumption per unit steel has fell from 1.5 tons of standard coal one decade ago to now 500 kilograms, said Chi.