China launches near-zero carbon steel production line in Zhanjiang

Baowu Steel near-zero carbon production line launched

China has inaugurated its first near-zero carbon steel production line in Zhanjiang, Guangdong Province.
The facility, operated by Baowu Steel, has an annual capacity of 1 million tons.
It combines hydrogen-based reduction with an electric arc furnace to reduce carbon emissions significantly.

Direct reduced iron (DRI) from the hydrogen blast furnace meets metallization targets.
High-efficiency electric furnaces improve energy utilization and lower overall emissions.
Compared to traditional methods, the line reduces carbon emissions by 50-80%, supporting China’s green steel ambitions.

Strategic impact on China’s steel industry

The Zhanjiang line aligns with China’s 14th Five-Year Plan (2021-2025) for green transformation in steel.
Between 2021 and 2024, 126 green steel plants were certified, advancing low-carbon industrial capacity.
CISA initiatives improved energy efficiency, saving 10.5 million tons of standard coal in 2024.

China balances green transformation with stable steel supply, favoring high-end producers while avoiding shortages.
The hydrogen-based DRI and EAF model positions Baowu Steel as a leader in low-carbon production.
This step demonstrates China’s commitment to sustainable steelmaking and technological innovation.

SuperMetalPrice Commentary:

Baowu Steel’s near-zero carbon line sets a benchmark for green steel globally.
Hydrogen reduction and electric arc furnace integration highlight the pathway to decarbonized production.
Investors should watch hydrogen-based DRI adoption and energy-efficient EAF expansion for future market dynamics.