Emissions in China’s Steel Industry Rose by 20.8% in July 2025

Rising Emissions and Energy Consumption in China’s Steel Industry

China’s steel sector, represented by the China Iron and Steel Association (CISA), recorded a 20.8% year-on-year increase in emissions in July 2025. This sharp rise contrasts with a minor 0.1% increase in total energy consumption across the industry. Despite higher emissions, sulfur dioxide, particulate matter, and nitrogen oxides in waste gases dropped by 13.1%, 1.5%, and 12.1%, respectively, showing improved air pollution control measures. Electricity consumption per ton of steel increased by 1.2%, although overall energy consumption per ton slightly decreased by 0.5%.

Focus Keyphrase: Emissions in China’s Steel Industry

The emissions rise links closely to a shift in production methods. Blast furnace activity increased relative to electric arc furnace use, contributing to higher CO2 output, despite a slight decrease in total steel production. However, clean energy production within the industry grew by nearly 50%, with wind and solar energy surging 1300% and 48.9%, respectively. Furthermore, water consumption per ton of steel declined by 3.1%, reflecting advancements in water efficiency. Slag and combustible gas reuse rates remained impressively high, exceeding 98%, highlighting ongoing efforts to enhance sustainability in steelmaking.

SuperMetalPrice Commentary:

Emissions in China’s steel industry reflect the complex balance between production growth and sustainability initiatives. The rise signals challenges from the industry’s reliance on blast furnaces, which emit more carbon despite cleaner waste gas management. However, the rapid expansion of renewable energy and efficient resource reuse offers optimism. Investors and stakeholders should closely watch China’s energy transition policies, as these will heavily influence future emissions trends and steel market dynamics globally.